Question: My bank has been placed under restrictions by the regulator, and I've been told I can't withdraw my full fixed deposit right now. I had about 7 lakh in total across two accounts there. How much of that is actually protected, and when would I get it?
Answer: Deposit insurance covers each depositor up to a maximum of ₹5,00,000 (principal plus interest combined) per bank, with all your accounts held in the same right and capacity aggregated across branches. So out of your ₹7 lakh, only ₹5,00,000 is insured; for the amount above this, you become an unsecured creditor in any subsequent liquidation or resolution process. Under the amended deposit insurance framework, the insured amount (up to the limit) must be paid to depositors within 90 days of the bank being placed under such restrictions or moratorium.

Supporting evidence:
title: dicgc.org.in/guide-to-deposit-insurance
quote: Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount of upto Rupees five lakhs is paid the Corporation is liable to settle deposit insurance claims of insured banks placed under All-Inclusive Directions (AID) within 90 days
context: The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits
Deposits of foreign Governments;
Deposits of Central/State Governments;
Inter-bank deposits;
Any amount due on account of any deposit received outside India
Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India
What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank's license or the date on which the scheme of amalgamation/merger/reconstruction comes into force/imposition of “All Inclusive Directions” on the bank by the Reserve Bank of India, with restrictions on withdrawal of deposits.
How will you know whether your bank is insured by the DICGC or not?
The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the branch official in this regard.
What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank?
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount of upto Rupees five lakhs is paid.
Does the DICGC insure just the principal on an account or both principal and accrued interest?
The DICGC insures principal and interest upto a maximum amount of ₹ 5 lakh.
For example, if an individual had an account with a principal amount of ₹ 4,95,000 plus accrued interest of ₹ 4,000, the total amount insured by the DICGC would be ₹4,99,000. If, however, the principal amount in that account was ₹ 5 lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.
Can deposit insurance be increased by depositing funds into several different accounts all at the same bank?
All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be separately insured.