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Bank collapse rules: In this era of online transactions, most people keep not just one but several bank accounts (bank account news). Some have opened accounts in different branches of the same bank, while some have multiple accounts in different banks. If the money deposited in more bank accounts (cash deposit rules) is also more, then you need to think a lot.

This money of yours is surrounded by risk with the collapse of the bank (bank collapse amount back rule), although the government has also made a rule for refund of money in case of bank collapse (govt rules in bankrupt). The thing to note is whether the entire amount deposited in these accounts is returned or not. Know what is the rule regarding this.

The insurance amount is received through this medium--

If a bank collapses or goes bankrupt (RBI rules in bankruptcy) or closes due to any reason, then only Rs 5 lakh deposited in the customer's bank account is considered safe. The customer does not get more than this amount. This amount is secured through the Deposit Insurance and Credit Guarantee Corporation (DICGC) working under RBI (RBI latest news).

The amount of deposit insurance cover was earlier Rs 1 lakh which was later increased to Rs 5 lakh. This money is received within 90 days after making a claim (insurance claim in bank collapse) on bank collapse.

How safe is it to keep money in different bank accounts-

Only Rs 5 lakh (bank collapse insurance money) is returned to the account holder in case of bank collapse, no matter how much amount is above this. If less than Rs 5 lakh is deposited (cash deposit rules), less money is received. According to this, opening different accounts in different banks and keeping money deposited can be said to be safer (account safety rules).

Because the possibility of many banks collapsing simultaneously is negligible. Even if more than one bank goes bankrupt (bank bankrupt rules), you can get Rs 5 lakh from each bank, which means the loss will be less.

This is how the deposit amount is counted-

In every bank, the deposit amount (bank deposit guarantee) is counted by combining all the accounts of the account holder. If the bank goes bankrupt, all the accounts will be considered as one. If there are many accounts in different branches of the same bank and the amount deposited in them is more than Rs 5 lakh, even then if the bank goes bankrupt, the customer (bank account holder's rights) will get only Rs 5 lakh as compensation as per the guarantee. This includes principal and interest etc. If the amount deposited in the accounts is less than Rs 5 lakh, then you will get less.

Rules on depositing FD and money together-

If you have deposited Rs 5 lakh (insurance on bank bankrupt) in a bank and have made an FD of Rs 3 lakh or less or more, even then if the bank goes bankrupt, you will get only Rs 5 lakh back. This means that along with the bank bankrupt insurance, the customer's deposit amount above Rs 5 lakh also gets lost.

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