: Depositors will be paid up to Rs 5 lakh within 90 days of banks being put under moratorium: Centre #IndiaNEWS The Union Cabinet on Wednesday approved amendments to the Deposit Insurance Credit Guarantee

@IndiaNEWS

Posted in: #IndiaNEWS

Depositors will be paid up to Rs 5 lakh within 90 days of banks being put under moratorium: Centre #IndiaNEWS
The Union Cabinet on Wednesday approved amendments to the Deposit Insurance Credit Guarantee Corporation Act, under which account holders can access up to Rs 5 lakh within 90 days of a distressed bank being placed under moratorium.The Reserve Bank of India holds the power to put distressed banks under moratoriums, typically imposing restrictions like limits on withdrawals by customers. The amendment is aimed at providing relief to customers in such cases. Last year, the central government had raised insurance cover on deposit to Rs 5 lakh from Rs 1 lakh to support account holders of stressed lenders like the Punjab and Maharashtra Co-operative Bank.“The Deposit Insurance Credit Guarantee Corporation insures bank deposits such as savings, fixed deposits, current or recurring deposits,� Finance Minister Nirmala Sitharaman said at a press conference in New Delhi. “It also covers commercial, public, private sector banks and branches of foreign banks in India.�The finance minister added that 98.3% of all bank accounts would be fully protected within the law. “Normally, it takes around eight to 10 years after complete liquidation to get money under insurance; but now, even if there is a moratorium, within 90 days, the process will definitely be completed, giving relief to depositors,� Sitharaman added, according to NDTV.Within the first...Read more

Intraday stocks under 50 NSE India Twitter of India

Vote Up Vote Down

Login to post a comment!