Depositors to get Rs 5 lakh deposit insurance amount within 90 days of Moratorium
New Delhi: The Union Cabinet on Wednesday cleared Deposit Insurance & Credit Guarantee Corporation Bill 2021. Through the bill the government intends to amend the Deposit Insurance & Credit Guarantee Corporation (ICGC) act.
The bill insures bank deposits such as savings, FDs, current or recurring deposits. It also covers commercial, public, private sector banks & branches of foreign bank in India.
The bill will provide a solution to the biggest issue of customers having zero access to their funds for a long period till the RBI lifts the curbs on such banks. Finance Minister Nirmala Sitharaman announced that even if there is a moratorium on the bank, depositors will get their deposit insurance amount within 90 days.
A deposit Insurance Credit Guarantee Corporation was created in case people faced difficulties after RBI imposes moratoriums on banks. Today’s Cabinet meeting has decided that within 90 days, depositors will receive Rs 5 lakhs of their money, said Union Minister Anurag Thakur after the cabinet meet.