With the talk of FRDI Bill reentering public discourse and the recent increase in DICGC deposit insurance to INR 5.00 Lakhs, Fixed Deposits up to this amount are safe in Public Sector and Private Sector Banks.
Should RBI (A) simply increase DICGC insurance cover on bank deposits to ~INR 5L per global benchmark & let the chips fall where they might as it happens abroad, OR (B) continue to protect 100% of bank deposits via "shotgun mergers" as it has been doing so far? pic.twitter.com/ED1NjVqdjh
— Ketharaman Swaminathan (@s_ketharaman) October 9, 2019
I’m not sure what “finance banks” means but if they’re also covered by the DICGC deposit insurance of INR 5.00 Lakhs, then Fixed Deposits up to this amount are safe in these banks as well.
Please note that the INR 5L figure is not per bank but cumulatively across all DICGC-insured banks.
NOTE: This is not financial advice. This answer is provided without any warranties or guarantees.