According to the latest Economic Survey 49.1 percent of the total amount held as a deposit with Indian banks is not covered under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, reports Outlook.
This is after the insurance cover amount was raised to Rs 5 lakh. Earlier, when the cover was only for Rs 1 lakh, about 60 percent of the amount in bank deposits was not covered.
With deposit insurance coverage of Rs 5 lakh per depositor per bank, there were 247.8 crore fully protected accounts at the end-March 2021, constituting 98.1 percent of the total number of accounts (252.6 crores). This is much higher than the international benchmark of 80 percent.