Bank Deposit Insurance Cover Increased: Check Deets
Bank deposit insurance coverage increased from Rs 1 lakh to Rs 5 lakh, with a 90-day reimbursement period: Piyush Goyal is an Indian businessman.
The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, had previously been enacted by Parliament in August.
Bank Deposit Insurance Cover Increased: The government has increased the bank deposit insurance cover from Rs 1 lakh to Rs 5 lakh, according to Union Commerce and Industry Minister Piyush Goyal. He said that the money must be returned to the depositor within 90 days.
"Earlier, there used to be a bank deposit insurance cover of Rs 1 lakh for deposits of the same amount or more under the 'Deposit Insurance Credit Guarantee Scheme'. It took nearly 10 years. When Prime Minister Narendra Modi was the Chief Minister of Gujarat, he had written to the then Prime Minister, Manmohan Singh, to extend this limit to Rs 5 lakh. The then government did not do it," a news agency quoted Goyal as saying.
"Now, if a person faces any problem or setback with all of his deposits in a bank, and if the bank is incapable of returning the deposit, then the depositor will get a refund of Rs 5 lakh," he added.
Aside from that, the minister promised that the deposited funds would be returned to depositors within 90 days after the bank's liquidation.
"The most important thing is that while earlier it used to take nearly 10 years, now it has been ensured that on the day on which the Reserve Bank of India decides to shut down the bank, the sum of Rs 5 lakh will be refunded to the depositors' account within 90 days of the closure of the bank," he said.
Goyal also stated that the shorter time period will save depositors money on interest lost over the previous system's ten-year tenure. Furthermore, he stated that the programme provides the world's greatest depositor coverage, reaching 98 per cent of the population.
The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, had previously been enacted by Parliament in August.
Deposit insurance protects all deposits in all commercial banks in India, including savings, fixed, current, and recurring accounts. Deposits in state, central, and primary cooperative banks that operate in states or union territories are also insured.
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