The fall of two major US banks, the Silicon Valley Bank and the Signature Bank, back-to-back has led to fear among their customers about their hard-earned money. It has also been reported that some companies in India may have suffered due to the fall of Silicon Valley Bank. However, US President Joe Biden has made an effort to ease concerns by reassuring people that their money was secure.
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Even the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), guaranteed in a combined declaration that taxpayers would not incur any losses as a result of Silicon Valley Bank’s bankruptcy. But do you know what happens when a bank collapses in India? If not, then read further.
For accounts made with registered banks, the RBI’s affiliate DICGC (Deposit Insurance and Credit Guarantee Corporation) provides insurance coverage. The insurance programme provides up to Rs 5,00,000 per bank to depositors in the event of bank failure for accumulated bank deposits, which include permanent deposits, savings accounts, recurring deposits and current accounts. Here, the DICGC policy insures both the interest and the primary components.
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All accounts, including savings, fixed, current, recurrent, etc., are insured by the DICGC, except the following kinds of assets:
