We deposit our savings in banks to protect them. Apart from this, millions of crores of people in our country also deposit their life's hard-earned money in the form of FDs, so that they can meet their big needs with this amount. The same people deposit money in banks, but somewhere in their minds, the question remains that if the bank fails, what will happen to their money? After the issue of the same PMC bank, the concern of the people has increased in this regard. Today, we are going to tell you what will happen to your hard-earned income if the bank fails.

If the economic condition of most public sector and private sector banks is good, but still people are worried about their money. On February 1, Finance Minister Nirmala Sitharaman in her budget speech gave big relief to the account holders for this. Apart from this, the Finance Minister in the budget speech had announced to increase the insurance amount for depositors in the event of bank failure. On receipt of the approval of the Government of India, the Reserve Bank of India has increased the amount of insurance cover per depositor to five lakhs, apart from the earlier one lakh rupees. Now, in case of bank failure, up to five lakh customer deposits will be insured and will be returned to the depositor.

Apart from this, this increased amount limit for insurance cover has come into effect from February 4. For your information, let us tell you that this scheme of deposit insurance is offered by Deposit Insurance and Credit Guarantee Corporation. It is a wholly-owned subsidiary of the Reserve Bank of India. The same Deposit Insurance and Credit Guarantee Corporation does not directly charge any premium amount from the depositor of the bank for this insurance cover, but banks are required to pay a premium for this insurance cover.

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