The correct answer is Rs. 1 lakh. In the budget of FY 2020, Finance Minister Nirmala Sitharaman has announced to increase the bank deposit insurance in scheduled commercial banks from Rs. 1 lakh to Rs 5 lakh per depositor. This has been done to improve the security of public funds. This means that depositors will get back rupees 5 lakh maximum if the bank closes down. This is the first time in 27 years that this limit has been revised. Additional InformationThis came into consideration after Punjab and Maharashtra Co-operative Bank (PMC Bank) whose headquarters is in Mumbai came under the scrutiny of RBI. The last time this revision was made in 1993 to Rupees 100000.