Bank deposit insurance cover raised to Rs 5 lakh

Nirmala Sitharaman. Pic/Pallav Paliwal

Bringing sigh of relief for the depositors in stressed banks, the Union Cabinet on Wednesday gave nod to the Deposit Insurance Credit Guarantee Corporation (DICGC) Bill, 2021.

Addressing media persons, Union Finance Minister Nirmala Sitharaman said, "The proposed law will insure bank deposits up to Rs 5 lakh. Under DICGC Bill 2021, 98.3 per cent of all deposits will get covered and in terms of deposit value, 50.9 per cent deposit value will be covered. Global deposit value is only 80 per cent of all deposit accounts. It only covers 20-30 per cent of deposit value."

"The Union Cabinet has decided that depositors of troubled banks would get their money back within 90 days. As of now, several depositors of troubled lenders are waiting for longer periods to retrieve the money deposited in the bank accounts," the finance minister said at the press briefing.

Apart from DICGC Bill, 2021, the cabinet also approved the Limited Liability Partnership Amendment Bill. "To provide ease of doing business benefits to law-abiding corporators in LLP firms, the criminality has been removed. A penalty in the form of a fine has been decided for violations of general trends. This boosts Aatmanirbhar Bharat," Union Minister Anurag Thakur said during the briefing.

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