Bank Updates News India

Deposits up to Rs 5 lakh per depositor per bank are insured by DICGC (Deposit Insurance and Credit Guarantee Corporation). This includes savings, fixed deposits, and current accounts across all banks including small finance banks and co-operative banks. For amounts above Rs 5 lakh, spread across banks.

Co-operative banks are member-owned banks regulated jointly by RBI and state co-op registrars. They're often smaller and more localized. Deposit insurance up to Rs 5 lakh applies here too. Historically some (like PMC in 2019) faced crises, so verify RBI's current supervision status before parking large amounts.

In the recent PSU bank mergers, existing account numbers, IFSCs, and cards get replaced with the merged entity's over 6-12 months. Standing instructions and SIPs may need re-linking. Watch for merger circulars from your bank and update mandates promptly to avoid failed EMIs or SIPs.

Zero-balance closure is allowed at any time. Some banks charge a fee if the account is closed within 14 days of opening. Ensure all standing instructions are cancelled, refund of prepaid annual charges (if applicable) is claimed, and issue a written closure request. Retain the acknowledgment as proof.