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RBI Rule: What will happen to your money if the bank collapses, 90 percent of people do not know RBI rules

RBI Rule: All banks in India work under the Reserve Bank of India, which ensures that people's money is safe. But have you ever thought that if your bank sinks, what will happen to the money deposited in it...? 90 percent of people do not know about this rule of RBI-

 
2025 Rbi Rules

Breaking News, Digital Desk-  (RBI Rules) Bank is the best place to keep your hard earned money safe. Here your money is not only safe, but you also get interest on it. Different banks offer different interest rates on savings accounts. All banks in India work under RBI, which ensures that people's money is safe. But have you thought what will happen to the money deposited in your bank if it collapses?

RBI has made rules to protect the money of common people-

If your hard-earned money deposited in a bank is lost due to the bank going bankrupt, then do not worry. RBI (Reserve Bank of India) has made rules to protect the money of the customers. If a bank collapses or goes bankrupt, then you get back your money deposited in it up to a fixed limit.

How much money do you get back in case of a bank failure?

According to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, if a bank collapses, then all the customers (depositors) of that bank get a deposit insurance cover of up to Rs 5 lakh. 

This deposit insurance cover includes both your principal and interest amount deposited in the bank that collapses. Let us tell you that deposit insurance is also applicable on all types of deposits like savings account, current account, RD, FD.

Let us tell you that if you have deposited Rs 10 lakh in a bank and that bank collapses, then according to RBI rules, you will be able to get a maximum of Rs 5 lakh only.

How many days does it take for the money to come back?

Money deposited in bad banks can now be recovered within 90 days. Earlier this process used to take a lot of time, but the central government made changes in the DICGC Act in 2021. 

Under these changes, customers who have been put in moratorium will get back their deposits up to Rs 5 lakh within 90 days from the start of the moratorium.