Finance Ministry

Bank deposit insurance to be paid in around 90 days – DICGC Bill 2021

Bank deposit insurance to be paid in around 90 days in case of bank failure. Cabinet clears Deposit Insurance & Credit Guarantee Corporation Bill 2021 

Deposit Insurance & Credit Guarantee Corporation Bill 2021 has been cleared by the Cabinet today. The said corporation insures all bank deposits such as savings, fixed, current or recurring. It also covers all banks whether private or public. It also covers branches of foreign banks in India.

DICGC had raised the limit of insurance cover for depositors in insured banks from ₹ 1 lakh to ₹5 lakh per depositor with effect from February 4, 2020 with the approval of Government of India

Each depositors deposits in the bank are insured up to maximum of Rs. 5 lakhs in each bank including both principal and interest. 

It is stated by the Union Finance Minister that with the increase in the insurance, 98.3% of all deposit accounts shall be covered by the insurance and in terms of deposit value, 50.90% deposits shall be covered by the increase coverage.

She told that in case of a bank failure, the claim of the depositors shall be paid in around 90 days without waiting for eventual liquidation of the bank.

It was stated that the Bill will give relief to all banks which has already been declared under moratorium.

  

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