Neutral impactEconomy
Rs 10 Lakh In One Bank Or Rs 5 Lakh Each In Two Banks: Is Your Money Equally Protected?
NDTV Profit 41 min ago·13 Nov 2026, 6:28 am
The Reserve Bank of India (RBI) has increased the deposit insurance limit to Rs 5 lakh per depositor per bank. This means if you have Rs 10 lakh in a single bank, the first Rs 5 lakh is fully protected, while the remaining amount is not. However, if you split your money equally across two different banks, the full Rs 10 lakh is covered, as the insurance applies separately to each institution.
This change is significant for retail investors who keep large sums in a single account. It highlights the importance of diversifying your savings to ensure complete protection against bank failures. While the move aims to boost confidence in the banking system, it is crucial to remember that insurance does not cover other financial products like stocks or mutual funds.
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- Category: Economy.
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