Bank collapse rules: Consumers get many benefits by keeping money deposited in their bank accounts. Interest is also received on this money (interest on cash deposit) and the security of the money is separate. The customer gets worried about this money when a bank collapses (bank collapse rules) or closes down.

This worry is also natural, so RBI has made many rules regarding this situation. RBI has also decided in its rules (RBI Rules on bank collapse) that if the bank collapses, how much money will the customer get back?

Insurance coverage rule -

When the bank collapses, this insurance coverage is given by the Deposit Insurance and Credit Guarantee Corporation (DICGC) working under RBI (bank RBI Rules) to the amount deposited in the account by the customer (cash deposit rules). If there is an amount of more than 5 lakhs in the bank account (bank account news), then it is not available, only 5 lakh rupees will be returned. If the amount is less than 5 lakhs, then it will be returned in full.

Rules on depositing money in multiple branches of a bank-

Earlier this insurance amount was Rs. 1 lakh in case of bank collapse, later it was increased to Rs. 5 lakh. Even if you have accounts in different branches of the same bank, you will get a maximum of Rs. 5 lakh back in case of bank collapse. In this situation, all accounts are considered as one. Of course, apart from the account, you may also have an FD (fixed deposit).

Rules on depositing money in different banks-

If you have accounts in different banks, you can get this insurance cover from both banks. However, the chances of two banks collapsing together (RBI bankrupt Rules) are negligible. This rule of insurance coverage is not applicable on cooperative societies.

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