In the Union Budget 2020, how much insurance coverage did the Government of India propose to increase on bank fixed deposits and savings which previously was ₹1 lakh only?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹5 lakhs.
- On the 1st of February 2020, Finance Minister Nirmala Sitharaman presented the Union Budget 2020 in the Parliament. In it, an increase in deposit insurance to Rs. 5 lakh was proposed which was earlier set at Rs. 1 lakh for the bank account holders.
- This revision in the insurance cover came into effect from the 4th of February, 2020.
- Deposit insurance is insurance for deposits held by customers in a bank. It is provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- It includes commercial public banks and small finance banks. Company deposits are not included in the deposit insurance