Modi to address a function on bank deposit insurance tomorrow

New Delhi, December 11, 2021

Prime Minister Narendra Modi will address a function on “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh” here tomorrow.

According to an official press release, the function is being held at noon in Vigyan Bhawan. Deposit insurance covers savings, fixed, current, recurring deposits, etc. in all commercial banks in India. Deposits in State, Central and Primary cooperative banks, functioning in States/Union Territories are also covered.

In a path-breaking reform, bank deposit insurance cover was enhanced from Rs 1 lakh to Rs 5 lakh. With deposit insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at end of the previous financial year constituted 98.1% of the total number of accounts, as against the international benchmark of 80%, the release said.

The first tranche of interim payments has been released by the Deposit Insurance and Credit Guarantee Corporation recently, against claims received from depositors of 16 Urban Cooperative Banks which are under restrictions by RBI. Payout of over Rs 1,300 crore has been made to alternate bank accounts of over 1 lakh depositors against their claims.

The Union Finance Minister and the Governor of the Reserve Bank of India will also be present on the occasion.

NNN