By Q2 of fiscal year 2019-2020, the amount stood at staggering Rs.72.5 billion. About 90 percent frauds were at nationalized banks- which is something shocking.
Reasons for Bank Frauds
While every bank implements stringent rules and regulations prescribed by RBI, scammers and fraudsters often find a ways and means to overcome these.
Unfortunately, some scams and frauds also involve bank employees at various levels.
Given this scenario, you’ll definitely wonder: how safe is your money with banks in India. In this article, I will try and answer this important question.
There are countless reasons for bank frauds. These include lax vigilance of internal systems, frauds in Know Your Customer (KYC) documents by customers and lots more.
How Safe is Your Money at Banks in India?
Under existing laws of India, all commercial banks operating in this country- including foreign banks- have to get a license from the Reserve Bank of India and other relevant departments of the Indian government.
Therefore, every bank has to insure itself with the Deposit Insurance & Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India. Remember, no bank can operate in this country without an insurance from DICGC.
And DICGC plays a very important role to ensure your money is safe with banks in India. However, there’s a limit to the safety of your money with banks in India.
Role of DICGC & Safety of Your Money
DIGCG covers all your Savings, Current, Recurring Deposit, Fixed Deposit and every other account you hold at any bank in India.
However, DICGC will pay you only a maximum of Rs.100,000 per account if the bank has to close down for any reason.
By Q2 of fiscal year 2019-2020, the amount stood at staggering Rs.72.5 billion. About 90 percent frauds were at nationalized banks- which is something shocking.
Reasons for Bank Frauds
While every bank implements stringent rules and regulations prescribed by RBI, scammers and fraudsters often find a ways and means to overcome these.
Unfortunately, some scams and frauds also involve bank employees at various levels.
Given this scenario, you’ll definitely wonder: how safe is your money with banks in India. In this article, I will try and answer this important question.
There are countless reasons for bank frauds. These include lax vigilance of internal systems, frauds in Know Your Customer (KYC) documents by customers and lots more.
How Safe is Your Money at Banks in India?
Under existing laws of India, all commercial banks operating in this country- including foreign banks- have to get a license from the Reserve Bank of India and other relevant departments of the Indian government.
Therefore, every bank has to insure itself with the Deposit Insurance & Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India. Remember, no bank can operate in this country without an insurance from DICGC.
And DICGC plays a very important role to ensure your money is safe with banks in India. However, there’s a limit to the safety of your money with banks in India.
Role of DICGC & Safety of Your Money
DIGCG covers all your Savings, Current, Recurring Deposit, Fixed Deposit and every other account you hold at any bank in India.
However, DICGC will pay you only a maximum of Rs.100,000 per account if the bank has to close down for any reason.
By Q2 of fiscal year 2019-2020, the amount stood at staggering Rs.72.5 billion. About 90 percent frauds were at nationalized banks- which is something shocking.
Reasons for Bank Frauds
While every bank implements stringent rules and regulations prescribed by RBI, scammers and fraudsters often find a ways and means to overcome these.
Unfortunately, some scams and frauds also involve bank employees at various levels.
Given this scenario, you’ll definitely wonder: how safe is your money with banks in India. In this article, I will try and answer this important question.
There are countless reasons for bank frauds. These include lax vigilance of internal systems, frauds in Know Your Customer (KYC) documents by customers and lots more.
How Safe is Your Money at Banks in India?
Under existing laws of India, all commercial banks operating in this country- including foreign banks- have to get a license from the Reserve Bank of India and other relevant departments of the Indian government.
Therefore, every bank has to insure itself with the Deposit Insurance & Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India. Remember, no bank can operate in this country without an insurance from DICGC.
And DICGC plays a very important role to ensure your money is safe with banks in India. However, there’s a limit to the safety of your money with banks in India.
Role of DICGC & Safety of Your Money
DIGCG covers all your Savings, Current, Recurring Deposit, Fixed Deposit and every other account you hold at any bank in India.
However, DICGC will pay you only a maximum of Rs.100,000 per account if the bank has to close down for any reason.
By Q2 of fiscal year 2019-2020, the amount stood at staggering Rs.72.5 billion. About 90 percent frauds were at nationalized banks- which is something shocking.
Reasons for Bank Frauds
While every bank implements stringent rules and regulations prescribed by RBI, scammers and fraudsters often find a ways and means to overcome these.
Unfortunately, some scams and frauds also involve bank employees at various levels.
Given this scenario, you’ll definitely wonder: how safe is your money with banks in India. In this article, I will try and answer this important question.
There are countless reasons for bank frauds. These include lax vigilance of internal systems, frauds in Know Your Customer (KYC) documents by customers and lots more.
How Safe is Your Money at Banks in India?
Under existing laws of India, all commercial banks operating in this country- including foreign banks- have to get a license from the Reserve Bank of India and other relevant departments of the Indian government.
Therefore, every bank has to insure itself with the Deposit Insurance & Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India. Remember, no bank can operate in this country without an insurance from DICGC.
And DICGC plays a very important role to ensure your money is safe with banks in India. However, there’s a limit to the safety of your money with banks in India.
Role of DICGC & Safety of Your Money
DIGCG covers all your Savings, Current, Recurring Deposit, Fixed Deposit and every other account you hold at any bank in India.
However, DICGC will pay you only a maximum of Rs.100,000 per account if the bank has to close down for any reason.
