Kaushik 19 December 2020

Frdi act

Dear Experts,

If I book a FD in a Bank for X Lacs, then that FD will be insured for 5 Lacs but if I book N number of FDs for X/N Lacs each in the same Branch of the same Bank, then will each FD be insured under the FRDI Act for 5 Lacs each or will the entire amount of X Lacs be insured for just 5 Lacs?

Kaushik.

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Quick Summary

This discussion clarifies how the FRDI Act insures bank Fixed Deposits. While a single deposit is insured up to ₹5 Lakhs, multiple FDs in the same bank under the same name still aggregate to a ₹5 Lakhs maximum coverage. However, if FDs are held under different names (e.g., family members), each individual is entitled to the full ₹5 Lakhs insurance cover.

2 Replies

G.L.N. Prasad (Retired employee.) 20 December 2020

The aggregate cover is a maximum of Rs.5.00 lakhs in one name. It can be different names and then each first name coverage comes to Rs.5 lakhs. A has deposited lakhs of Rs.3, 3 1 , 6: maximum coverage is Rs.5 lakhs. If A depositors in B, C, or D family members then each number is treated as a separate individual and each individual is entitled to coverage of Rs.5 lakhs.

You can file RTI Application to RBI, DBOD, Fort, Mumbai and can seek for that specific copy of directives issued by them and go through the directives for more information