93% of bank deposits fully protected: Govt

93% of bank deposits fully protected: Govt
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First Published: Fri, Oct 24 2008. 09 55 PM IST
Updated: Fri, Oct 24 2008. 09 55 PM IST
PTI
New Delhi: Government today said that 92.6% bank deposits are fully protected under the Deposit and Insurance and Credit Guarantee scheme.
“As at the end of March 2008, fully protected deposits accounts constituted 92.6% of total number of deposit accounts,” Minister of State for Finance Pawan Kumar Bansal said in a written reply in the Lok Sabha.
He, however, ruled out the possibility of formulating any special law to protect the interests of depositors in the financial institutions. He added that the Deposit and Insurance and Credit Gurantee Corporation (DICGC) extends insurance cover to small investors in the banking system of the country.
Deposit insurance is compulsory for all banks in the country and the Deposit Insurance Scheme covers all commercial banks including local area banks, regional rural banks, co-operative banks and private banks across the country, he said.
He said that in the event of liquidation, reconstruction, amalgamation of an insured bank, every depositor is entitled to repayment of his deposit up to Rs1 lakh.
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First Published: Fri, Oct 24 2008. 09 55 PM IST