Centre not to hike insurance cover of Rs 100,000 for bank deposits

Andhra Pradesh Chief Minister Chandrababu Naidu suggested an increase in deposit insurance cover to Rs 1.5 million in a letter to then finance minister Arun Jaitley in May

The Union government has no plans to increase the existing insurance cover of Rs 100,000 for bank deposits. The Centre has turned down a request from Andhra Pradesh Chief Minister Chandrababu Naidu who suggested an increase in deposit insurance cover to Rs 1.5 million in a letter to then finance minister Arun Jaitley in May.

At present, all deposits up to Rs 100,000 are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The finance ministry examined Naidu’s proposal after consulting the DICGC, a subsidiary of the Reserve Bank of India (RBI) that guarantees depositors’ money. The ministry felt that the