The deposit protection limit for bank accounts has been raised to Rs 500,000.

The Deposit Protection Corporation Amendment Bill 2024 was reviewed by Senator Salim Mandviwala, who presided over the Senate Standing Committee on Finance meeting.

The State Bank Deputy Governor informed the committee members, “Money up to 5 lakh rupees in banks will get legal protection.”

Previously, the deputy governor said, deposits up to Rs. 250,000 were safe.

What are programs for deposit protection?

The purpose of deposit protection plans is to handle individual bank failures and lessen the possibility that they will spread and cause systemic issues.