Legal Question in Banking Law in United Kingdom

bank corrupt

If the any bank go for bank corrupt,is it affect my saving account or current account deposit,If yes what will the money limit is guranteed for depositer by RBI or any body


Asked on 2/08/09, 3:49 pm

2 Answers from Attorneys
J. Radhakrishnan independent Practice

Re: bank corrupt

If the bank in which you hold any deposit, current or savings or fixed deposit, becomes bankrupt ( not bank corrupt as you have wrongly mentioned), and if it is a scheduled bank, the Deposit credit gurantee corporation guarantees repayment to you upto Rs.1 Lakh. Beyond that amount, there is no prospect of your getting back the amount in credit in your account. Nowadays, RBI does not allow any bank to become totally bankrupt but arranges for merger with another healthy bank, in which case, your deposits are protected. If it is a co-operative bank which is not merged, the limit of credit guarantee is only upto Rs.1 lakh and not more.

Read more
Answered on 2/08/09, 9:40 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: bank corrupt

I agree with the opinion of my esteemed colleague Mr. Radhakrishnan.

Read more
Answered on 2/09/09, 6:55 am


Related Questions & Answers

More Banking Law questions and answers in United Kingdom