In the Union Budget 2020, how much insurance coverage did the Government of India propose to increase on bank fixed deposits and savings which previously was ₹1 lakh only?

Explanation

The correct answer is ₹ 5 lakhs. Key Points This is the first time since 1993 that the deposit insurance coverage has been raised. In May 1993, deposit insurance cover was increased to Rs 1 lakh from Rs 30,000. The Indian Union Budget 2020-21 announced that the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase deposit insurance coverage to Rs. 5 lakh per depositor from Rs. 1 lakh previously . If a customer’s deposit amount crosses Rs 5 lakh in a single bank, only up to Rs 5 lakh, including the principal and interest, will be paid by the DICGC if the bank turns bankrupt. Additional Information The union budget of India was introduced on 1 February 2020 by Finance Minister Nirmala Sitharaman . The budget is woven around three prominent themes Aspirational India. Economic Development. Caring Society. It was the second budget presented by Finance Minister Nirmala Sitharaman. In the Union Budget of India;2020, the largest allocation is given to the defence sector. The Ministry of Defence received an allocation of Rs 4,71,378 Crores which is 15% of the total budget expenditure of the central government. The Union Budget of India is also referred to as the Annual Financial Statement in Article 112 of the Constitution of India. Important Points Independent India's first budget was presented on November 26, 1947 , by the then Finance Minister RK Shanmukham Chetty . Sitharaman holds the record for delivering the longest speech when she spoke for 2 hours and 42 minutes while presenting the Union Budget 2020-21 . The covid-19 pandemic turned the Budget for 2021-22 paperless - a first in Independent India . In 2019, Sitharaman became the second woman to have presented the budget after Indira Gandhi .