deposits up to 5 lakh in banks are completely safe
Account holders will get insurance protection on deposits up to Rs 5 lakh in any format across all banks in the country. Till now only one lakh rupees of the deposits in banks were safe.
New Delhi. The Union Cabinet has taken a big decision on Wednesday in the interest of bank depositors. This is also a good news for those who deposit money in banks. Under this decision, the Cabinet has given its approval to the Deposit Insurance and Credit Guarantee Corporation (DIGC) Bill and the Limited Liability Partnership Amendment Bill. Finance Minister Nirmala Sitharaman said that under the DIGC bill, deposits up to Rs 5 lakh will be insured even if a bank is under moratorium. This includes any type of deposit up to Rs 5 lakh in all banks. Till now only one lakh rupees of the deposits in banks were safe.
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98.3% deposit cover from DICGC bill
Finance Minister Nirmala Sitharaman said that 98.3% of all deposits will be covered under the DICGC Bill 2021. In terms of deposit value, the rate is 50.9 per cent. While Global Deposit Value Only 80% of all deposit accounts are safe. It covers only 20 to 30% of the deposit value.
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Preparing to make the deposited money safe
The government is working on making the money deposited in banks more secure than before. Under this, out of the money kept in the banks in future, the amount up to five lakh rupees will be completely safe. For this, in the Budget 2021-22, the Central Government had proposed to amend the DICGC law (Proposal to amend the DICGC law). With this, insurance will be protected on the capital of the depositors of banks in crisis up to five lakh rupees. According to the latest update, the government has proposed to amend the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act and has announced to increase the insurance cover on deposits by five times to Rs 5 lakh.
Depositors will get relief in crisis
It is believed that the amendment in the DICGC Act-1961 will give relief to the depositors of banks which are in crisis in recent times. DICGC is a wholly owned subsidiary of the Reserve Bank of India. It provides insurance cover on bank deposits.
Customer’s money trapped due to crisis in these banks
In the recent times, Punjab and Maharashtra Co-operative (PMC) Bank, Yes Bank and Lakshmi Vilas Bank have stranded thousands of customers’ money due to the crisis. In view of such apprehensions, the government is in the process of ensuring the safety guarantee of at least five lakh rupees to the customer.
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