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Bank depositors to get Rs 5 Lakh insurance within 90 days in case of moratorium: FM

The Cabinet on Wednesday approved amendment to DICGC Act to provide account holders access to up to Rs 5 lakh funds within 90 days of bank failure. 

India TV Business Desk India TV Business Desk
New Delhi Updated on: July 28, 2021 16:48 IST
Bank depositors to get Rs 5 Lakh insurance within 90 days
Image Source : PTI

Bank depositors to get Rs 5 Lakh insurance within 90 days in case of moratorium: FM

The Union Cabinet on Wednesday approved amendment to DICGC Act to provide account holders access to up to Rs 5 lakh funds within 90 days of bank failure.

"Deposit Insurance Credit Guarantee Corporation was created in case people faced difficulties after RBI imposes moratoriums on banks. Today's Cabinet meeting has decided that within 90 days, depositors will receive Rs 5 lakhs of their money," Union Minister Anurag Thakur said today. 

To provide ease of doing business benefits to law-abiding corporators in LLP firms, the criminality has been removed, he said. "A penalty in the form of a fine has been decided for violations of general trends. This boosts Aatmanirbhar Bharat," Thakur added. 

Under the DICGC Bill 2021, 98.3% of all deposits will get covered and in terms of deposit value, 50.9% deposit value will be covered, Union Finance Minister Nirmala Sitharaman said. Global deposit value is only 80% of all deposit accounts. It only covers 20-30% of deposit value, she said. 

Meanwhile, a multilateral MoU has also been signed between international financial service centres and multilateral agencies, International Organisation of Security Commissions and International Association of Insurance Supervisors. 

READ MORE: RBI announces loan moratorium to individuals, small borrowers - Check eligibility

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