Bank account holder? Worried you may LOSE your MONEY in banking scams? Then know THIS
A huge number of banking scams and other crises have got bank account holders worried about their money in banks! Will they lose it all? Account holders of PMC Bank and Yes Bank had been scared witless by the crises that hit them. What of others?
Bank account holders live in fear of losing the hard-earned money that they have deposited. How safe is that money? Can they lose it all? These and other questions have led to generation of extreme fear. Also, ever since the PMC Bank crisis has emerged, bank account holders and bank depositors have become worried sick as they are concerned about their money. PMC Bank account holders could not withdraw their money and then only small amounts came their way. Similarly, we witnessed the Yes Bank account holders, who got under huge stress, when they come to know about the rumors of default that forced huge selloff of shares on the stock exchanges.
Bank account holders are very right in being worried. In fact, PMC Bank crisis has caused the death of 2 people in just 2 days! Both these men were extremely worried as they could not withdraw their money. One of them in fact, had a special child and required the money to pay for medical bills. He suffered a heart attack in Mumbai. The other person too suffered a heart attack.
See Zee Business Live TV streaming below:
So, if you too are worried then know the status of your money here. According to the rules, the Deposit Insurance and Credit Guarantee Corporation or DICGC provides a safety net to all the marginal bank customers who have small bank savings or bank deposits of up to Rs 1 lakh. However, there is no such guarantee for your money above this amount.
Speaking on how does the Deposit Insurance and Credit Guarantee Corporation or DICGC ensures safety of small and marginal bank deposits, Manikaran Singh, a SEBI registered tax and investment expert said, "According to the DICGC norms, bank deposits up to Rs 1 lakh are insured and in case of bank default, the DGCGC will ensure return of bank deposits up to Rs 1 lakh to bank customers." Elaborating upon the process of DGCGC norms, Manikaran Singh said, "The DGCGC norms clearly mentions that your bank deposits up to Rs 1 lakh is insured and in case of bank default (the bank has to be listed with DGCGC), the bank account holder will get his deposits up to Rs 1 lakh."
However, he said that if someone has deposited more than Rs 1 lakh, he or she would just get Rs 1 lakh in case of bank default!
On how does a bank depositor would get his money back if his or her bank defaults, Manikaran said that in such case, the DGCGC will appoint a liquidator. The liquidator would submit a report to the DGCGC and thereafter the DGCGC will transfer money to the liquidator who will pass it on to the bank customers. So, the PMC Bank scam victims, especially the small and marginal customers who have bank deposits below Rs 1 lakh need not worry for their money as the DGCGC ensures insurance to their bank savings.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.