Depositors will get Rs. 5 lakh in 90 days of bank failure
New Delhi: Union Finance Minister Nirmala Sitharaman has announced that the Union Cabinet has approved the Deposit Insurance Credit Guarantee Corporation (DICGC) bill 2021, which will credit account holders account of up Rs. 5 lakh within 90 days of bank failure.
The bill insures all bank depositors, covering all commercial banks and even foreign banks in India to provide insurance coverage of Rs. 5 lakh to the depositors if bank failure.
Under the DICGC, the depositor’s bank deposit is insured up to Rs. 5 lakh in each bank. The increase of the insured amount from Rs 1 lakh to Rs 5 lakh will cover 98.3 percent of all deposit accounts and 50.9 percent of deposit value, the Finance minister said.
“Normally, it takes 8-10 years after complete liquidation to get money under insurance; but now, even if there is a moratorium, within 90 days, the process will definitely be completed, giving relief to depositors, the finance minister said.