Finally, the deposit insurance cover has been raised five-fold to Rs 5 lakh — a huge comfort for small depositors, some of whom have been staring at losing their money kept in fraud-hit and mismanaged cooperative banks. Now if any bank fails, the depositors will get as much as Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI).
It took 17 years and a Rs 6,670-crore fraud in multi-state Punjab and Maharashtra Co-operative Bank to raise the cover. The latest revision, sixth since it started in ...
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First Published: Sun, February 09 2020. 21:15 IST
