Banking Crisis: After Silicon Valley and 186 banks on the verge of collapse! What to do if you also have money in the bank? – 186 banks in the us are at risk of failure what depositors in india must do
After the banking crisis started in America, people are withdrawing money from small banks and putting them in big banks. They believe that the risk is less in big banks. More than 500 banks have collapsed in America since 2001. Most of the people deposit money in the bank thinking that their money is safe there. But it is not so at all. If your bank sinks or goes bankrupt, you will only get some money. You get an insurance cover of up to five lakh rupees on the amount deposited in the bank. In the US, this limit is $2.5 lakh. If your bank defaults or goes bankrupt, you will get the same amount, even if crores of rupees are deposited in the bank.
No matter how much is deposited, you will get only five lakhs
This amount is given to you by the Deposit Insurance and Credit Guarantee Corporation (DICGC). It is a wholly owned subsidiary of the Bank. This company insures the banks of the country. Earlier, under this act, an amount of up to one lakh rupees was given in case of bank sinking or bankruptcy, but in 2020 the government increased it to five lakh rupees. Then after the Punjab and Maharashtra Co-operative Bank (PMC) scam came to light, the confidence of the investors was shaken. The central government had approved increasing the insurance cover on savings deposits to a guarantee of Rs 5 lakh per depositor.
All types of commercial banks come under its purview. It covers all types of accounts including savings, current, fixed and recurring deposits. If your account is in a government bank or a big private bank, then your money is considered insured. In case of bank collapse or closure, DICGC collects all information related to customers’ accounts within 45 days. After this, it is scrutinized in depth and the money is given to the customer within the next 45 days. This whole process takes about 90 days.
in which bank to keep money
If your account is in two banks and both the banks fail, then in such a situation you get Rs 5 lakh each from both the banks. If you have two accounts in the same bank, then in this situation you will get only five lakh rupees. Experts say that instead of keeping the money in one bank, it should be kept in different banks. If you have kept 20 lakh rupees in a bank, then in the event of its sinking, you will get only 5 lakh rupees. If you keep 5 lakh each in four banks, then you will get everything. If you have deposited money in different branches of the same bank, then you will get a maximum of five lakh rupees only.
RBI does the work of monitoring the banking system in the country. In whichever bank he finds fault, he asks him to rectify it immediately. Due to the strictness of RBI, India has remained untouched from the global crisis till now. Most of the banks in India are safe. But still not all banks are the same. RBI itself has considered three banks SBI, ICICI Bank and HDFC as Systemically Important Banks. They have been considered important for the country’s economy. That is, RBI will never let these banks sink.
how to deposit big amount
If you want to deposit a large amount in the bank, instead of one bank, you can deposit it in many banks. Out of this, 60 to 70 percent can be kept in SBI, ICICI Bank and HDFC. The remaining amount can be kept in those banks which are paying more interest. You can keep money in the name of maximum members of the family. If there are four members in the family, then money can be kept in the name of all. In this way, you can get an insured cover of at least 20 lakhs in the same bank. Keeping money in five banks, the insured amount will reach one crore. Avoid taking risks in the hope of higher returns.