Explanation:

- In 2020, the Deposit Insurance and Credit Guarantee Corporation (DICGC) was allowed to raise deposit insurance coverage for bank depositors.

- Earlier, the insurance cover was fixed at Rs1 lakh per depositor, per bank.

- The revised insurance cover increased the limit to Rs5 lakh per depositor, per bank.

- This means if a bank fails, each depositor gets their deposits insured up to Rs5 lakh.

- There was no provision to raise the cover to Rs3 lakh or Rs7 lakh.

- Rs1 lakh was the old limit, not the new.

Option 3 – Rs5 lakh is the correct answer.