Be careful if you keep more than 5 lakhs

This information is very important for you, if you also have a savings account, allays be careful if you keep more than 5 lakhs in your savings or current account.

According to RBI, every account holder’s deposit amount has limited security. Many people keep depositing large amounts in their account without paying attention to the limit.

You will get security only up to 5 lakhs.

If you deposit more than the limit in your account and the bank sinks for some reason, an official security limit has been fixed in every savings account.

So you will get security only up to 5 lakhs. That is, the large amount deposited with you can be at risk. You have no guarantee on the amount above this.

Bank deposit insurance limit

The limit of bank deposit insurance has been increased from 1 lakh to 5 lakhs. In the budget of the year 2020, Finance Minister Nirmala Sitharaman made a big announcement and this decision was implemented through Deposit Insurance and Credit Guarantee Corporation.

Earlier, if a bank failed, only deposits up to Rs 1 lakh were considered safe.

Customers have got financial security.

Under this, if a bank goes bankrupt or comes under moratorium, account holders can get back deposits up to Rs 5 lakh within 90 days through DICGC.

The cabinet passed this rule in 2020. And their trust in the banking system has strengthened. Customers have got financial security from this scheme.

There is a guarantee of only Rs 5 lakh.

Be careful if you keep more than 5 lakhs for example If a customer has made an FD of Rs 5 lakh, and has kept Rs 3 lakh in a savings account, then also there is a guarantee of only Rs 5 lakh in total.

This security limit does not apply to the type of bank, branch or number of accounts, but to the total deposit amount of each person.

If a customer has Rs 8 lakh in FD and savings account combined in the same bank, even then in case of bank sinking, he will get a maximum of Rs 5 lakh.

Read Also

How to keep money safe?

Although very few banks have failed in India in the last 50 years, smart banking is necessary for the safety of money. If you want:

Deposit money by dividing it in different banks

Avoid keeping a large amount in a single bank

Deposit only up to 5 lakhs in each bank so that all accounts can get DICGC protection. Insurance protection is ensured.

Now the bank has to pay a premium of 12 paisa to DICGC for every 100 deposits. Customers get direct benefit from this, because this ensures insurance protection of their deposited money.

In future, this security limit can also increase further, which the government can consider.

Understand the rules before depositing a large amount

You should be cautious if you also keep more than 5 lakhs in your savings account.

In such a situation, it would be better if you distribute your money carefully and know the rules of RBI and DICGC. Your money is not completely safe in banks, rather it is only guaranteed up to Rs 5 lakh.

Can I keep 5 lakhs in my account?

Yes You Can

Can I withdraw 5 lakh cash from a bank?

Yes You can

What is the daily ATM limit?

ATM daily withdrawal limits in India vary by bank to bank and account variant.