Current context: The Reserve Bank of India (RBI) said in a statement released on 4th February 2020 said that Insurance cover on bank deposits has been increased to Rs 5 lakh from Rs 1 lakh per depositor.
a. Rs 4 lakh
b. Rs 5 lakh
c. Rs 7 lakh
d. Rs 10 lakh
- The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India provides the insurance coverage to the depositors.
- The DICGC has raised the limit of insurance cover for depositors in insured banks to provide a greater measure of protection to depositors in banks and boost the confidence of people in the banking system.
- The insurance coverage norm of the RBI is effective from 4th February 2020, with the approval of Government of India.
- Deposit insurance was static at one lakh rupees since 1993.
- Finance Minister Nirmala Sitharaman had made the announcement regarding increasing insurance cover to five lakh rupees in her Budget Speech 2020-21.
- Now, the banks will pay a premium of 12 paise against 10 paise per 100 rupees deposited after the increased insurance coverage.
- The deposit insurance scheme covers all banks operating in India, including:
- Private sector
- Cooperative
- Branches of foreign banks
- Exemptions have been given to:
- Deposits of foreign governments
- Deposits of Central and State Governments
- Inter-bank deposits
Question:
Q.1 The Reserve Bank of India has increased the Insurance cover on bank deposits per depositor for all banks in the country from Rs 1 lakh currently to __________?a. Rs 4 lakh
b. Rs 5 lakh
c. Rs 7 lakh
d. Rs 10 lakh
