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RBI (Reserve Bank of India) has imposed a ban on New India Co-operative Bank for 6 months. Due to this ban, the bank can no longer do any new business, and customers are also not allowed to withdraw money from their accounts. This has created a situation of anxiety and crisis among the customers, as they are not able to use their money.

We always consider the bank as a safe option so that our money will be safe here. But what is the truth? If a bank sinks or gets banned like New India Co-operative Bank, is your money safe? Or how much money will you get back from your deposit? The answer to all these questions is in the rules of RBI, let us know.

How much is safe in banks-

According to the rules of RBI, you can deposit money in the bank in various ways as per your wish. However, in the event of a bank going bankrupt or getting banned, you get a refund as per the rules. The bank does not guarantee all your money in case of theft, robbery, or ban in the bank.

How much money will the bank return?

According to Section 16(1) of the Deposit Insurance and Credit Guarantee Corporation Act 1961, your amount deposited in the bank is guaranteed up to a maximum of ₹5 lakh. This means that if you have ₹10 lakh in your account and the bank goes bankrupt, you will get only ₹5 lakh back. This rule applies to all types of deposits, such as savings accounts, fixed deposits, etc.

If you have deposited more than this amount, then in case of a loss to the bank, your money will also be lost. The Deposit Insurance and Credit Guarantee Corporation of the Reserve Bank guarantees your deposited money, but keep in mind that this money should not exceed 5 lakhs in any case. If you have more money than this, the bank will not return the entire money to you.

RBI rule-

It is not that only one bank guarantees your amount up to 5 lakhs. No matter how much money is deposited in different accounts, the combined guarantee will be up to Rs 5 lakh. Whether you keep this money in a savings account or a current account or even if you have made an FD. Overall, in case of a loss to the bank, you will get back only Rs 5 lakh.

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