Are fixed deposits with private companies and banks secured in case the company/banks close down?
1 Answers
RBI's Deposit Insurance and Credit Guarantee Corporation (DICGC) protects deposits held in any any nationalized or private sector bank or co-operative bank in India upto a limit of 1 lakh per account. In case bank closes down or become bankrupt, RBI pays 1 lakh to the depositor.
But this protection is not available with company fixed deposits, that's the reason corporate fixed deposits are considered riskier than bank fixed deposits.
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