Budget 2022

Budget 2020: Bank deposit insurance cover increased to ₹5 lakh from ₹1 lakh

Image for representational purposes only

Image for representational purposes only

Finance Minister Nirmala Sitharaman on Saturday said there was a robust mechanism in place to monitor the health of all scheduled commercial banks.

Tabling the Union Budget for 2020-21, Ms. Sitharaman said the deposit insurance cover had been increased from ₹1 lakh to ₹5 lakh per depositor. “Depositors’ money in scheduled commercial banks is absolutely safe,” she said. This comes after the closure of Punjab and Maharashtra Cooperative Bank last year, leaving thousands of depositors in crisis.

Ms. Sitharaman said, “The balance government holding in IDBI bank will be be sold to private retail investors.”

She added that a total of ₹3.50 lakh crore had been infused as capital in public sector banks in the past years.


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Printable version | May 21, 2022 11:28:30 pm | https://www.thehindu.com/business/budget/budget-2020-deposit-insurance-cover-increased-to-5-lakh-from-1-lakh/article30710978.ece