r2i forum

bengal_tiger;46495I was wondering if private bank deposits in India are insured like the FDIC system in the US. If yes, what it is called and is there an upper limit that you get back in case the Bank fails (such as the $100,000 limit in the US). Also, does getting back your deposit involve a legally cumbersome procedure?

I have been advised by many to keep money in government banks (such as SBI) as opposed to banks like ICICI/Citibank on the grounds that government banks are "more secure". Is there any reason to follow that advise if the amounts are insured?[/quote]

bengal_tiger;46539Thanks nand! I also checked to find that it is 1 lac. I was wondering what
retired people in India do with their accumulated savings. Is keeping more
than 1 lac "safe" even in a government bank when it is insured for
only 1 lac? Are there any other "secure" investment options?[/quote]

It is max 1L per person per bank.
Most of the people divert their savings money to Post office savings for safety.

In reality, getting this 1L is also big issue.
The Bank has to declare Bankrupt it should be accepted by RBI and other boards.

Incase of Charminar/Krushi/many other banks. they did not declare bankrupt, instead, ran away with the money. The police cases were filed and it became criminal matter. The customers did not get even one rupee from the RBI and Bankruptcy board.

Incase of Global Trust Bank, the RBI did a clever job by merging GTB with other indian bank.Customers were not effected. GTB president, who is a real professional (Ramesh Gelly ?), who just infromed RBI that they were bankrupt.

babuvrr;46575It is max 1L per person per bank.

bengal_tiger;46539Thanks nand! I also checked to find that it is 1 lac.

kallu;49563Can you please provide a source.[/quote]