SBI customer? Your deposits up to only Rs 5 lakh is insured in a bank; check conditions

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Published: June 10, 2020 3:43 PM

Deposits up to Rs 5 lakh of SBI customers are insured under DICGC scheme. This scheme covers all bank deposits subject to certain limits and conditions.

sbi deposit guaranteeBank deposit upto Rs 5 lakh is insured.

The State Bank of India has informed its customers that all their deposits are insured under the Deposit Insurance and Credit Guarantee Corporation of India scheme. In a tweet from its official handle, SBI said, “All your deposits in the SBI bank is insured under the Deposit Insurance and Credit Guarantee Corporation of India (DICGC) scheme subject to certain limits and conditions.”

As per the official SBI website, deposits up to Rs 5 lakh of SBI customers are insured under DICGC scheme. This scheme covers all bank deposits subject to certain limits and conditions. These are:

– Deposits such as savings, fixed, current, recurring, etc. are insured.

– Each depositor in a bank is insured up to a maximum of Rs 5 lakh. The SBI website says this amount includes both the “principal and interest amount held by the depositor in the bank on the date of date of liquidation/cancellation of Bank’s licence or the date on which the scheme of amalgamation/ merger/ reconstruction comes into force.”

SBI is the largest bank in the country. On Monday, SBI announced the reduction in its MCLR by 25 bps across all tenors. The one year MCLR of SBI has now come down to 7.00 per cent p.a from 7.25 per cent p.a. with effect from June 10, 2020. This was the thirteenth consecutive reduction in bank’s MCLR.

SBI has also cut its Base Rate by 75 bps, from 8.15% to 7.40% w.e.f 10th June 2020. Additionally, SBI has passed on the entire 40 bps Repo rate cut (announced by RBI on 22nd May 2020) to its borrowers availing loans linked to External Benchmark linked lending rate (EBR) as well as Repo Linked Lending rate (RLLR). As such, SBI’s EBR & RLLR comes down by 40 bps, as under:

  • EBR reduced to 6.65% p.a from 7.05% p.a. w.e.f 01st July 2020
  • RLLR reduced to 6.25% p.a from 6.65% p.a, w.e.f 01st June 2020

The bank said, “Consequently, EMIs on eligible home loan accounts linked to MCLR will get cheaper by approx. Rs. 421 and those linked to EBR/RLLR will get cheaper by around Rs. 660, for a 30 years loan of Rs. 25 lakh.”

SBI will hold its virtual General Meeting on 17th June 2020 at 3.00 p.m. via Video Conferencing (VC)/Other Audio-Visual Means (OAVM) as per guidelines issued by the Ministry of Corporate Affairs and SEBI.

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