The Senate Standing Committee on Finance met under the direction of Senator Salim Mandviwala, who also examined the Deposit Protection Corporation Amendment Bill 2024.
“Money in banks up to 5 lakh rupees will now get legal protection,” State Bank Deputy Governor informed the committee members.
The deputy governor also stated that deposits up to Rs. 250,000 were previously protected.
How do deposit protection plans work?
The deposit protection plans are intended to handle a bank’s failure on an isolated basis and lessen the possibility that a single bank failure will lead to systemic issues and contagion.
