Jammu, May 29 -- In a major boost for term and savings account holders, the Reserve Bank of India (RBI) is reportedly considering an increase in the deposit insurance limit, currently fixed at Rs.5 lakh. The revised coverage, extended through the Deposit Insurance and Credit Guarantee Corporation (DICGC) -a fully owned subsidiary of the RBI-is expected to receive approval shortly. Although the government has not yet made a final decision on revising the Rs.5 lakh deposit insurance limit set five years ago, an official indicated that the new cap is likely to be set within the Rs.10 lakh range.

The insurance provided by the DICGC covers all types of deposits-including savings and current accounts-held by customers in both commercial and co...