Prime Minister Narendra Modi is all set to address beneficiaries during a programme titled, “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh,” on Sunday i.e 12th December 2021 at Vigyan Bhawan in New Delhi.
On the occasion, Union Finance Minister Nirmala Sitharaman, Minister of State Finance Dr Bhagwat Kishanrao Karad and RBI Governor Shaktikanta Das will also be present.
Deposit insurance covers all deposits including savings, fixed, current and recurring deposits in all commercial banks that are functioning in India. The Prime Minister’s Office highlighted that deposits in the state, central and primary cooperative banks, functioning in States and Union Territories are also covered. The number of fully protected accounts at end of the previous financial year constituted 98.1% of the total aggregate number of accounts – with deposit insurance coverage of Rs. 5 lakh per depositor per bank – as against the international benchmark of 80%.
It may be noted that in India, in a path-breaking reform, the bank deposit insurance cover was enhanced from Rs. 1 lakh to a subsequent Rs 5 lakh, the Prime Minister’s Office further added. Adding to this, a payout of over Rs 1,300 crore has been made to alternate bank accounts of over 1 lakh depositors against their claims.
The first tranche of interim payments has been released by the Deposit Insurance and Credit Guarantee Corporation recently against the claims received from depositors of 16 Urban Cooperative Banks which are under restrictions by the Reserve Bank of India (RBI).
