Kathmandu. The Government of India has announced deposit guarantee scheme for the security of saving upto Rs. 500,000 of banks and financial institutes(BFIs).
Amending the Deposit and Credit Guarantee Act, the Government of India has announced guarantee of saving deposits upto INR.5 lakh per depositor. The depositors will get their money returned within 90 days if their BFIs go bankrupt or face any financial crisis. Earlier, security was guaranteed only up to INR 1 lakh.
The Government of India claims that 98% of depositors are covered under the Deposit and Credit Guarantee Program and has announced that it has been implemented as the largest deposit guarantee program in the world.
According to Indian Express, India currently has 252.60 crore depositors and Of these, 247.8 billion depositors have less than Rs. 500,000 in their bank accounts.
In Nepal the deposit of upto Rs.3 lakh has been guaranteed by the Nepal Rastra Bank(NRB) through the Deposit and Credit Guarantee Fund(DCGF).