Government considers raising deposit insurance limit from 5L to 7.5L
Business
The government is thinking about raising the deposit insurance limit from ₹5 lakh to ₹7.5 lakh, hoping to give people more peace of mind about their savings, especially after some recent cooperative bank troubles.
The proposal's already with the Prime Minister's Office, so it could happen soon.
Deposit insurance adopts risk based premiums
The last time this insurance got a boost was back in 2020, when it jumped from ₹1 lakh to ₹5 lakh.
With several urban cooperative banks failing recently and nearly ₹2,000 crore paid out in claims in FY26, the move aims to make depositors feel safer.
Plus, there's a new system where well-managed banks pay lower premiums and riskier ones pay more, so your money should be in better hands going forward.