In order to secure the earnings of the account holders in the event of the bank sinking, the cabinet today approved amendments to the Deposit Insurance Act. With the help of this, such depositors will get relief who have deposited their money in small banks. With the help of the amendment, the depositors will be insured up to Rs 5 lakh in the event of the bank sinking and they will get it back within 90 days.
The cabinet on Wednesday approved a proposal to amend the Deposit Insurance and Credit Guarantee Corporation Act. The objective is to ensure timely assistance to the depositors of the bank in case of any crisis due to the imposition of transaction restrictions to ensure an opportunity for them to receive their deposits up to Rs 5 lakh within 90 days.
Changes in the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act have been approved by the Cabinet. Finance Minister Nirmala Sitharaman said that the government will bring this bill in the monsoon session. With the amendment in the DICGC Act, the scope of deposit insurance will increase and 98.3 percent of bank account holders will be completely protected under this.
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