Thread by @joinditto

What do you do if your #bank shuts down?

A thread.

With the #MoneyHeistSeason5 trailer launching today, have you ever wondered what happens when your bank gets robbed or shuts down?🤔

Every citizen deserves to know that when they put their hard-earned savings in a bank, it is safe. Therefore banks have something known as deposit insurance and now, it has received a major overhaul.

This #insurance covers your deposits if a bank fails financially and has no money to pay its depositors. You won’t have to buy this insurance as almost every bank is insured under the Deposit Insurance & Credit Guarantee Corporation (DICGC), a subsidiary of the RBI.

Recently, the Finance Minister introduced an amendment in the Monsoon Session that aims to help depositors, in the off-chance a Professor targets your local bank.

So what's changed?

The claim amount was increased last year from 1 lakh to 5 lakhs, covering 98.3% of all deposit accounts by number against the global average of 80% (that's pretty good).

But the most important thing that was changed is that your money will be returned back to you within 90 days (even if the bank is currently under moratorium), compared to the 8-10 years it took earlier with the eventual liquidation or resolution of the failed bank.

When banks fail, the people with volatile financial situations suffer the most.

Seven people died and countless others were affected when the RBI imposed restrictions on the withdrawal of funds in PMC Bank, after it was hit with a 6,500-crore scam in 2019.

This regulation aims to avoid that and looks like a step in the right direction.

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Visit joinditto.in for simplified insurance advice.