New Delhi, Feb. 12 -- Deposits are crucial for any bank, as these are further given out as loans. Hence, it is important that a depositor feels confident about the money deposited with the bank. For this, the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, provides up to Rs.5 lakh insurance cover to each bank depositor for the principal and interest amount. However, is this insurance cover enough, or should the government increase it? Let us discuss.

According to information available on the DICGC website, as of 31 March 2025, 97.6% of the total bank deposit accounts are insured. The DICGC has insured 293.7 crore deposit accounts. So, that is very good coverage.

However, if we look at the value (amount) of...