Finance Minister Nirmala Sitharaman.Cabinet Briefing Highlights: The Union Cabinet today approved the passing of the Deposit Insurance Credit Guarantee Corporation Bill, which aims to protect the interest of depositors. Finance Minister Nirmala Sitharaman said today that the proposed bill will insure bank deposits up to Rs 5 lakh. This bank will insure deposits such as savings, FDs, current or recurring deposits. It also includes branches of commercial, public, private sector banks and foreign banks in India. “Each depositor’s deposit in the bank is insured up to a maximum of Rs 5 lakh for both principal and interest. Now by increasing the sum insured from Rs 1 lakh to Rs 5 lakh in India, 98.3% of all deposit accounts will be covered,” the finance minister said. He further added that 50.98% of the deposit value will be covered by the DICGC Act. The proposed law will also ensure that depositors of distressed banks get their money back within 90 days. “The first 45 days will go to the distressed bank to collect all their accounts, where claims have to be made, which will be given to the proposed DICGC,” the finance minister said. DICGC will scrutinize the assigned accounts and hand over the money to the depositors in about 90 days,” the minister informed. In addition, the Union Cabinet proposed the first amendment to the Limited Liability Partnership Act.
.