New DICGC Bill Cleared

29 Jul 2021

Depositors to get up to Rs 5 lakh in 90 days of bank failure

✅ The union cabinet approved the amendment to Deposit Insurance Credit Guarantee Corporation (DICGC) Bill to provide account holders access to up to Rs 5 lakh funds within 90 days of bank failure

✅ The amendment to the DICGC Bill, 1961 is part of the budget announcement made by the finance minister

✅ This Bill covers all bank deposits, including commercial banks and foreign bank branches

✅ Under the DICGC, every depositor’s bank deposit is insured up to Rs 5 lakh in each bank (for both principal and interest)

✅ The insurance covers 98.3% of all deposit accounts and 50.9% according to the data quoted by Finance Minister Nirmala Sitharaman

✅ In 2020, the government had raised insurance cover on bank deposit from Rs 1 lakh to Rs 5 lakh to provide support to the depositors of struggling lenders like Punjab and Maharashtra Co-operative (PMC) Bank, Yes Bank and Lakshmi Vilas Bank which also came under stress, leading to restructuring by the regulator and the government

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