Account holders will heave a sigh of relief as the government is taking a new step towards the protection of financial assets to strengthen the policy framework of public and private lenders. According to a report by business daily Mint, deposits of up to Rs 7.5 lakh in bank accounts may soon be protected against bank failures, up from the current cover of Rs 5 lakh. The finance ministry has sent a proposal to raise the deposit insurance limit to the Prime Minister's Office (PMO) for consideration.
If approved, this would be the first increase in the deposit insurance limit since February 2020, when the government raised the cover five-fold from Rs 1 lakh to Rs 5 lakh-including principal and interest across all accounts held in a bank. The move follows a series of banking crises, including those involving Punjab and Maharashtra Co-operative Bank and Yes Bank, according to the report.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.