New Delhi, May 2 -- Bank deposits are often considered one of the safest places to park money, especially for those seeking stability and assured returns. However, in the rare event of a bank failure, not all deposits may be fully protected. In India, deposit insurance is provided up to a fixed limit.

These parked funds are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC), which operates under the Reserve Bank of India (RBI) framework. This body ensures that depositors are protected up to a certain limit if a bank faces financial distress or restrictions.

Under the current rules, each depositor is insured up to Rs.5 lakh per bank, covering both principal and interest. This protection is offered across differe...