Good luck to bank customers! Now instead of ₹ 5 lakh, you will get full ₹ 7.5 lakh, Finance Ministry sent proposal to PMO

A very big and relief news is coming for crores of customers of the country who deposit their hard-earned money in the banks. The Central Government has started preparations to make the security of the general public’s money deposited in banks stronger and more secure than before. The inside news is that the government is seriously considering increasing the limit of bank deposit insurance (deposit insurance) from the current Rs 5 lakh to Rs 7.5 lakh.
Regarding this big decision, the Finance Ministry has prepared its complete proposal and sent it to the Prime Minister’s Office (PMO). It is believed that the final approval may be given on this very soon. If this proposal gets the green signal, bank customers will get more security and guarantee on their money than before.
After all, what is bank deposit insurance and how does it work?
Many people do not know that in India, the entire responsibility of security of money deposited in banks rests with a very special institution of the Reserve Bank, whose name is Deposit Insurance and Credit Guarantee Corporation (DICGC). God forbid, if ever a bank goes bankrupt, its license is canceled or the bank is completely closed, then it is this institution that bears the legal responsibility of returning all the money to the customers up to a certain limit.
Talking about the current government rules, currently all the accounts you have in any one bank, be it savings account, current account, fixed deposit (FD) or recurring deposit (RD), all these together provide insurance cover only up to a maximum of Rs 5 lakh. This limit of Rs 5 lakh includes both the principal amount deposited by you and the interest received on it.
It is going to be so big for the first time after the year 2020 change
Earlier in February 2020, the government had increased this limit of deposit insurance from Rs 1 lakh to Rs 5 lakh. During that time, after the collapse of many co-operative banks in the country and big cases like Yes Bank, there was a lot of concern among the account holders about the safety of their money. Now once again the government is planning to increase this limit to Rs 7.5 lakh.
Why is this new step of the government important for the general public?
The government and major economic experts of the country believe that it is very important to maintain the trust of small and middle class depositors in the banking system. In recent years, RBI has taken strict action against many small cooperative banks, after which this government institution had to pay the claims of the customers. If this limit of insurance is increased, then customers will get additional protection of up to Rs 2.5 lakh in case of failure of any bank. The biggest and direct benefit of this decision will be given to the senior citizens of our country, those investing in FD and middle class families.
Now the premium will be decided according to the risk and strength of the banks.
After the introduction of this new rule, now the same fee or premium will not be charged from all banks in exchange for deposit insurance. The stronger the financial condition of the bank and which is managing its risks well, the less premium it will have to pay to the government. On the other hand, banks whose financial condition is weak or which are at high risk of collapse will be charged heavy premium. This step of the government will start a good competition among the banks to improve their financial condition and keep the customers’ money safe.
There is no shortage of money, the organization has a lot of it. fund
According to government data, by March 31, 2026, the total size of the deposit insurance fund of this institution has reached more than Rs 2.61 lakh crore. At the same time, in the last financial year 2025-26, the institution has completely settled customer claims worth Rs 1,988 crore. It is clear from these figures that this government institution has no dearth of money and financial resources to protect the interests of the account holders of the country.