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People deposit their money in banks to keep it safe. There are many banks in India in which people open accounts according to their convenience. But where people deposit money in the bank to keep it safe. So many banks are closed and due to this people's money gets stuck.

If a bank is closed, then this thought comes to the mind of the people. People who have an account in that bank that is being closed. So does their money also get stuck with the closure of the bank? Or is there any way to claim?

So let us tell you that if the operation of a bank stops i.e. it is closed by the RBI. So a process is fixed to get back the deposited money of the account holders of that bank. Under which their money is returned.

For this, the process of returning money to the people is done under the DICGC Act i.e. Deposit Insurance and Credit Guarantee Corporation Act. But in this, depositors can get money back only up to a limit.

Under the DICGC Act, depositors in the bank will be able to get back only up to Rs 5 lakh. Meaning that if a bank closes. So up to Rs 5 lakh of any customer in it remains safe. This is returned guaranteed.

Under Section 16 (1) of the DICGC Act, 1961, if a bank closes for any reason. Then DICGC is responsible for returning the money to every depositor. Depositors get insurance of up to Rs 5 lakh on their deposits.

After the bank closes, it is necessary to contact your bank branch immediately. After this, you can find out about the claim process from there. You can also know which documents will be required. If your deposit amount is more than Rs 5 lakh, then you will have to participate in the liquidation process.

Disclaimer: This content has been sourced and edited from abplive.com. While we have made modifications for clarity and presentation.