In one of its recent budgetary announcements, the Govt. of India had increased the Insurance cover of Bank’s deposits from Rs.1.00 lac to Rs. 5.00 lac, per depositor lying with a Bank. The Deposit Insurance Corporation made the changes accordingly and increased the insurance cover from an amount of Rs.1.00 lac to Rs.5.00 lac, which means that an amount of a depositor lying with a Bank is likely to get an insurance cover upto an amount of Rs.5.00 lac per depositor and incase of the said bank going into liquidation or not being able to repay the deposits of its depositors lying with the said Bank, the amount lying with the Bank upto an amount of Rs.5.00 lac, shall be paid by the Deposit Insurance company.
The abovesaid reform is likely to prove a boon for the depositors of CKP Cooperative Bank, the Bank having its Head office at Dadar, Maharashtra, the licence of which was recently cancelled by the Reserve Bank of India. A major portion of Bank’s depositors, that is to say about more than 99% of the depositors of the Bank fall in this category, who are likely to get an advantage of the Insurance scheme and shall get their money Back.
The Reserve Bank Chief General Manager Mr. Yogesh Dayal in one of his tweets made on yesterday, made it clear that “about 99.2% CKP Cooperative Bank Depositors to get money Bank under deposit insurance scheme”.
Sanjeev Kumar Khanna (Financial Mentor)
