Is any amount of money I keep in my saving bank secured?
No, only your account balance up to Rs. 1 Lakhs is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) making your capital relatively safe. Usually public sector banks are quite safe and your capital either in saving bank account of fixed deposits are quite safe. Private Banks are also equally safe as only a financial entity with a high financial cushion is given a banking license by RBI.
As of now, bank deposits in India are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC was set up in 1961. The amount insured by DICGC per depositor in a respective bank currently stands at Rs. 1 lakh since 1993. While most small depositors in the country who have savings of less than Rs. 1 lakh are already protected through this mechanism, post demonetisation average bank deposit amount has gone up.
To ensure that higher deposits get fair protection, a new resolution corporation may replace DICGC. And they would set up a new deposit insurance limit that is likely to exceed Rs. 1 lakh. This should help cover a very large number of depositors. Additionally, a bank’s bailing-in using depositor’s savings is just one of the options in the bail-in clause and not the only, so chances are it may be the last resort.
Looking for a Fixed Deposit? Click here.