Deposit Insurance
Bank deposit risk explained: What happens to your money if a lender fails to return it?
Bank deposits are generally safe, but in case of bank failure, only ₹5 lakh per depositor is insured under the DICGC. This coverage applies to all accounts in a bank, with specific exclusions for certain deposits. Details here.
2 min read2 May 2026Stronger banks can now pay less to insure customer deposits
From April, lenders’ deposit insurance costs will vary with asset quality, capital strength and governance, replacing the one-size-fits-all premium.
1 min read6 Feb 2026Next year’s shift to risk-based deposit insurance could help depositors make better banking choices
For long, all banks have paid the same price for deposit insurance, regardless of varying risk levels. The Reserve Bank of India (RBI) has decided on a shift to risk-based premiums. It’s a good move. It should push banks to manage risk better and also help depositors gauge safety.
2 min read24 Dec 2025RBI cancels Karnataka-based Karwar Urban Co-operative Bank's licence over earnings prospect
Reserve Bank of India (RBI), on 23 July 2025, cancelled the licence of the Karnataka-based Karwar Urban Co-operative Bank due to the institutional lender's lack of earning prospects over a matter of public interest. Check how much depositors will get back.
1 min read23 Jul 2025Is India's bank deposit insurance adequate? A reality check
India’s deposit insurance scheme offers wide coverage by number, but not by value—leaving large depositors at risk. With household savings rising, is the RBI’s safety net still fit for purpose?
3 min read22 Apr 2025Silicon Valley Bank: If a similar crisis took place here, this is what depositors stand to get
Deposit insurance facility was extended to depositors in 1962. That time, the insurance amount was Rs 1 lakh and stayed like this until 2020. In March 2020, it was raised to Rs 5 lakh.
2 min read14 Mar 2023What is a deposit insurance? All you need to know
The insurance of deposits in banks is called deposit insurance. Read further to find out how much do banks owe us in case they go bankrupt
2 min read27 Nov 2022Wait for it…
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