Bank insolvency

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devesh (Querist)

02 September 2016 if government banks become insolvent how much money I will received if I have 5 lakhs in the account As same for private banks?

Unnikrishnan B

Unnikrishnan B (Querist)

02 September 2016 all commercial banks provide DICGC cover up to 100000/- per bank .but fear not banks would not become insolvent .as you have studied banks provide 25% as statutory reserve every year if the profit and the capital adequacy is sufficient

Unnikrishnan B

Unnikrishnan B (Expert)

02 September 2016 Devesh,
All commercial banks provide DICGC cover uoto 100000/- per borrower .the deposits with all the branches of the bank is aggregated.civr include both principal and interest subject to One lakh.fear not banks would not become insolvent .as you have studied banks provide 25%of the net profit as statutory reserve.and the capital adequacy is sufficient.
Hope I have answered the query

devesh

devesh (Querist)

03 September 2016 thank u unnikrishnan

devesh

devesh (Querist)

03 September 2016 I didn't understand 25% as statutory reserved every year

Unnikrishnan B

Unnikrishnan B (Expert)

03 September 2016 You are most welcome

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