Finance
By: Shree1news, 29 JUL 2021
The Union Cabinet, on July 28, cleared the Deposit Insurance and Credit Guarantee Corporation (Amendment Bill), Finance Minister Nirmala Sitharaman said, a move that aims to protect the interest of depositors. Finance Minister Nirmala Sitharaman stated that the proposed bill will insure bank deposits up to Rs 5 lakh. It will insure bank deposits such as savings, FDs, current or recurring deposits. It also covers commercial, public, private sector banks & branches of foreign banks in India “Each depositor’s deposit in a bank is insured for up to a maximum of Rs 5 lakh, for both principal and interest. Now in India with an increase in insurance amount from Rs 1 lakh to Rs 5 lakh is going to cover 98.3% of all deposit account,” Finance Minister said. She further added that 50.98% of deposit value can be covered by the DICGC Act. The proposed law will also make sure that depositors of troubled banks get their refund in 90 days. “First 45 days will go for the bank in distress to gather all their accounts where claims will have to be made, which will be given to proposed DICGC,” the Finance Minister mentioned. The DICGC will verify the accounts handed over and hand over the money in approximately 90 days to the depositors,” the minister informed. Further, the Union Cabinet proposed the first amendment to the Limited Liability Partnership Act.
Source:A-N
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