Finance Minister Nirmala Sitharaman today announced that the Union Cabinet has cleared the amendment to the Deposit Insurance Credit Guarantee Corporation (DICGC) Bill 2021, which would provide account holders with an amount of up to Rs 5 lakh within 90 days of bank failure.
The minister stated that the DICGC Bill insures all bank deposits and covers all commercial banks and even foreign bank branches in India are covered under it.
Under the DICGC, each depositor's bank deposit is insured for up to Rs 5 lakh in each bank (for both principal and interest). The increase of insured amount from Rs 1 lakh to Rs 5 lakh will cover 98.3 per cent of all deposit accounts and 50.9 per cent of deposit value, Sitharaman noted.
“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.
Apart from the amendment to the DICGC Bill, Cabinet also cleared amendments to the Limited Liability Partnership (LLP) Bill, with an aim to decriminalise various provisions under the law and foster the ease of doing business in the country.
“With the Limited Liability Partnership Amendment Bill, we will have only 22 penal provisions, 7 compoundable offences, 3 non-compoundable offences,” Sitharaman said.