The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 was passed in the Rajya Sabha on Wednesday. According to this, depositors of the stressed bank will be able to withdraw up to Rs 5 lakh within 90 days.
New Delhi . The Deposit Insurance and Credit Corporation (DICGC) will get 30 days to substantiate the claims of the depositors of a failed bank. This time will be counted after receiving the list of outstanding deposits from the lender.
The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 was passed in the Rajya Sabha on Wednesday. According to this, depositors of the stressed bank will be able to withdraw up to Rs 5 lakh within 90 days. Under this, depositors will be able to withdraw their amount up to five lakh rupees in the event of a transaction ban on the troubled bank.
Finance Minister introduced the Rajya Sabha Bill
Finance Minister Nirmala Sitharaman introduced the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021 for discussion in the Upper House. BJD’s Dr. Amar Patnaik, TRS’s V Lingaiah Yadav, AIADMK’s M Thambidurai spoke on the bill amid uproar by opposition members.
In the midst of the uproar, Finance Minister Sitharaman responded to the brief discussion. He said that this bill has been brought to ensure easy and timely access to the hard earned money of the depositors. The Deposit Insurance and Credit Guarantee Corporation Act, 1961 has been amended to create confidence among the depositors about the safety of their money.
The Union Cabinet had approved the amendment proposal on July 28.
The Union Cabinet on Wednesday 28 July approved the proposal to amend the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021 (DICGC) Act. Under this, the depositors will be able to withdraw their amount up to five lakh rupees within a time in case of restrictions on transactions on the troubled bank.
Its objective is to ensure timely assistance to the depositors in case the bank is barred from transactions due to any crisis. After the amendment to the Act comes into force, the depositors will be ensured an opportunity to get their deposits up to Rs 5 lakh within 90 days if the transaction is stopped at the bank.
Finance Minister Nirmala Sitharaman had announced amendments to the DICGC Act, 1961 in the general budget. After this amendment, all account holders will get insurance cover for deposits up to Rs 5 lakh. This includes both the principal amount and interest.
DICGC is a wholly owned subsidiary of Reserve Bank of India
DICGC, a wholly owned subsidiary of Reserve Bank of India, provides insurance cover on bank deposits. Sitharaman said that DICGC insures all bank deposits…savings or term or current account deposits or recurring deposits. All commercial banks come under this. These also include foreign banks that have branches in India.
