New Delhi, Feb. 18 -- The Ministry of Finance is evaluating a proposal to increase the insurance coverage for bank deposits beyond the current limit of Rs 5 lakh, according to a senior ministry official's statement on Monday.

This development comes three days after the Reserve Bank of India placed New India Co-operative Bank under moratorium due to irregularities.

Department of Financial Services Secretary M Nagaraju confirmed that the proposal for enhanced deposit insurance is under active consideration during a press conference attended by Finance Minister Nirmala Sitharaman.

The government previously raised the insurance limit from Rs 1 lakh to Rs 5 lakh in 2020 following the Punjab and Maharashtra Co-operative Bank crisis in 2019....