New Delhi, June 5 -- Deposits of up to Rs.7.5 lakh in bank accounts may soon be protected against bank failures, up from the current cover of Rs.5 lakh, according to three people aware of the matter.

The finance ministry has sent a proposal to raise the deposit insurance limit to the Prime Minister's Office (PMO) for consideration, the people said on condition of anonymity.

If approved, this would be the first increase in the deposit insurance limit since February 2020, when the government raised the cover five-fold from Rs.1 lakh to Rs.5 lakh-including principal and interest across all accounts held in a bank. The move follows a series of banking crises, including those involving Punjab and Maharashtra Co-operative Bank and Yes Bank. ...