Depositors in stressed banks to get insurance money within 90 days

 Depositors in stressed banks to get insurance money within 90 days

of moratorium:

The fresh amendments to the DICGC Act will provide huge relief to depositors in stressed banks. 

The Union Cabinet on Wednesday cleared amendments to the Deposit Insurance Credit Guarantee Corporation (DICGC) Act, bringing relief to depositors in stressed banks or financial institutions that have been placed under a moratorium.

At a press briefing, Finance Minister Nirmala Sitharaman said, “The Deposit Insurance Credit Guarantee Corporation Bill, 2021 has been cleared by the Cabinet today.”

“Under DICGC Bill 2021, 98.3 per cent of all deposits will get covered and in terms of deposit value, 50.9 per cent deposit value will be covered. Global deposit value is only 80 per cent of all deposit accounts. It only covers 20-30 per cent of the deposit value.”

As per the fresh amendments to the act, depositors in stressed banks that have faced regulatory action must receive insurance on their bank deposits — to the tune of Rs 5 lakh — within 90 days. The new rule will be applicable to all commercial banks and branches of foreign banks operating in India.

This rule will be applicable to stressed banks that have been placed under a moratorium by the Reserve Bank of India, clarified Nirmala Sitharaman.

*I wrote to and thanked the Finance Minister Nirmala Sitharaman for the amendment to the Deposit Insurance Credit Guarantee Bill.*

*This will now ensure that now if a Bank collapses, depositors will get back their money in 90 days.*

*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.*

*This is one successful completion of a task undertaken by our Alert Citizens Forum.*

*Dayanand Nene*