GENERAL KNOWLEDGE

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 PDIC provides a maximum deposit insurance coverage of PhP500, 000 per depositor per bank. It covers all types of bank deposits in banks. For insurance purposes, all deposit accounts of a depositor in a closed bank maintained in the same right and capacity shall be added together.

Detailed explanation-3: -The amount of Rs 5 lakh would be provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The government has notified September 1, 2021 as the date on which the provisions of the Act shall come into force, according to a gazette notification dated August 27, 2021.