Should an emergency fund be kept in one bank or multiple?

If emergency fund is modest, keeping it in one bank is convenient, Moneycontrol reported. However, spreading it across multiple accounts can provide backup if one bank faces technical issues or disruptions. In India, DICGC insures eligible bank deposits up to ₹5 lakh per depositor per bank, subject to applicable rules. Hence, people with large balances may spread deposits across banks.