Bank depositors in India are protected under the Deposit Insurance and Credit Guarantee Corporation’s (DICGC) insurance scheme, providing coverage of up to Rs 5 lakh per account. To maximize coverage, depositors can strategically spread their deposits across multiple banks, as each personal account, business account, and joint account is considered separately for insurance purposes. This ensures that in the event of a bank failure, depositors can recover up to the insured amount for each distinct account category. By diversifying deposits across different banks, depositors can mitigate risks and safeguard their savings. It is essential for depositors to be aware of the DICGC’s insurance coverage and to make informed decisions about their banking arrangements to protect their funds. With the increasing number of bank failures in recent years, understanding the insurance scheme and its limits is crucial for all depositors in India. By staying informed and taking proactive steps to diversify deposits, depositors can secure their savings and minimize potential losses in case of a bank collapse.