Cabinet Briefing Highlights: Depositors of troubled banks to now get money back in 90 days, Nirmala Sithraman says

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Updated: July 28, 2021 9:35:26 pm

Cabinet Briefing Highlights: Finance Minister Nirmala Sitharaman, along with Union Minister for Information and Broadcasting Anurag Thakur shed light on the Union Cabinet's decisions.

nirmala sitharaman, finance ministryFinance Minister Nirmala Sitharaman.

Cabinet Briefing Highlights: The Union Cabinet today gave its nod to pass the Deposit Insurance Credit Guarantee Corporation Bill, a move that aims to protect the interest of depositors. Finance Minister Nirmala Sitharaman today said that the proposed bill will insure bank deposits up to Rs 5 lakh. It will insure bank deposits such as savings, FDs, current or recurring deposits. It also covers commercial, public, private sector banks & branches of foreign banks in India “Each depositor’s deposit in a bank is insured for up to a maximum of Rs 5 lakh, for both principal and interest. Now in India with an increase in insurance amount from Rs 1 lakh to Rs 5 lakh is going to cover 98.3% of all deposit account,” Finance Minister said. She further added that 50.98% of deposit value will be covered by the DICGC Act. The proposed law will also ensure that depositors of troubled banks get their money back in 90 days. “First 45 days will go for the bank in distress to collect all their accounts where claims will have to be made, which will be given to proposed DICGC,” the Finance Minister said. The DICGC will check the accounts handed over and hand over the money in approximately 90 days to the depositors,” the minister informed. Further, the Union Cabinet proposed the first amendment to the Limited Liability Partnership Act. 

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Highlights

    17:23 (IST)28 Jul 2021
    Who all will DICGC cover?

    The DICGC will insure bank deposits such as savings, FDs, current or recurring deposits. It will also cover commercial, public, private sector banks & branches of foreign banks in India.

    17:03 (IST)28 Jul 2021
    Changes to Limited Liability Partnership law

    As of today, you have 24 penal provisions in the LLP Act, 21 compoundable offences, and 3 non-compoundable offences. "After today penal provisions will be cut to 22, compoundable offences will be only 7, non-compoundable offences will be only 3, and the number of defaults to be dealt will be only 12," the finance minister said.

    16:54 (IST)28 Jul 2021
    Banks currently under moratorium covered by new law

    Union Cabinet's decision to return investor's money in 90 days will also be applicable to banks currently under moratorium, the finance minister said. "This clearance now, therefore, is going to give relief to all those institutions which have already come under moratorium. It is not going retrospectively back, but if your bank has already been declared under moratorium this will cover," she added.

    16:51 (IST)28 Jul 2021
    How will depositors get money back in 90 days

    "First 45 days will go for the bank in distress to collect all their accounts where claims will have to be made, which will be given to proposed DICGC," the Finance Minister said. The DICGC will check the accounts handed over and hand over the money in approximately 90 days to the depositors. 

    16:49 (IST)28 Jul 2021
    Breather for depositors of troubled banks

    Finance Minister today said that the Union Cabinet has proposed that depositors of all troubled banks, even under moratorium, will get money back in 90 days. 

    16:47 (IST)28 Jul 2021
    India ahead of the globe in protecting depositors

    Finance Minister today said that while Union Cabinet recent decisions will protect 98.3% of deposit accounts as against 80% across the globe. India will no2 cover 50.98% deposit value, against 20-30% across the globe.

    16:45 (IST)28 Jul 2021
    50.98% deposit value to be insured

    With the Union Cabinet's decision today, 50.98% deposit value will be covered by the DICGC Act, the finance minister said today. 

    16:43 (IST)28 Jul 2021
    Deposit Insurance Credit Guarantee Corporation

    "Each depositors deposit in a bank is insured up to a maximum of Rs 5 lakh, for both principal and interest. Now in India with an increase in insurance amount from Rs 1 lakh to Rs 5 lakh is going to cover 98.3% of all deposit account," Finance Minister said.

    16:30 (IST)28 Jul 2021
    Deposit Insurance Credit Guarantee Corporation Bill

    The Union Cabinet has proposed a law that will insure bank deposits up to Rs 5 lakh. The Finance Minister today said that 98% of bank accounts would be fully protected after the proposed change.

    16:27 (IST)28 Jul 2021
    Limited Liability Partnership amendment bill

    The Union Cabinet decision has today proposed the first amendment to the Limited Liability Partnership act. The act came into existence in 2008-2009.

    16:24 (IST)28 Jul 2021
    Deposit insurance premium

    Deposit Insurance premium, paid by the bank, has been increased to 12 paise by the Union Cabinet today. The Union Cabinet said that Deposit Insurance Premium will not exceed 15 paise per 100 paise. 

    16:22 (IST)28 Jul 2021
    Depositor's money secured

    The Union Cabinet today decided that depositors of a troubled lender will no longer have to wait to access their money. The Union Cabinet has decided that in 90 days depositors will get their money back. 

    16:12 (IST)28 Jul 2021
    Finance Minister Nirmala Sitharaman's press conference begins

    Finance Minister Nirmala Sitharaman's press conference on Union Cabinet decisions begins.

    16:03 (IST)28 Jul 2021
    Finance Minister address to begin shortly

    Finance Minister Nirmala Sitharaman's press conference on Union Cabinet decisions is expected to begin shortly.

    15:58 (IST)28 Jul 2021
    Privatisation gaining pace?

    Finance Minister Nirmala Sitharaman could announce receiving the green light from the Union Cabinet for the privatisation of general insurance companies. 

    15:46 (IST)28 Jul 2021
    Finance Minister to shed light on Cabinet decisions

    Finance Minister Nirmala Sitharaman will address a press conference shortly. Accompanied by Union Minister Anurag Thakur, the Finance Minister is will shed light on decisions taken by the Union Cabinet today.

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