BANKING AFFAIRS

Detailed explanation-1: -Each depositor in a bank is insured upto a maximum of ₹ 5, 00, 000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Detailed explanation-2: -The deposits with NBFCs are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI.

Detailed explanation-3: -The standard insurance amount is $250, 000 per depositor, per insured bank, for each account ownership category. And you don’t have to purchase deposit insurance. If you open a deposit account in an FDIC-insured bank, you are automatically covered.

Detailed explanation-4: -All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.