If the bank sinks, now the account holders will get money within 90 days, Modi government will bring this bill

Punjab & Maharashtra Cooperative Bank (PMC), YES Bank, Lakshmi Vilas Bank has given great relief to the troubled customers of banks. The Central Cabinet (Cabinet) has approved the change in the DICGC Act in the meeting on Wednesday. Now the bill will be kept in Parliament. With this on the drowning of a bank, the account holder will get money within 90 days.

Modi government has given approval!

Finance Minister Nirmala Sitharaman gave information about the decision in the Cabinet meeting. Amendment in the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act has been approved in the Cabinet meeting under Prime Minister Narendra Modi. The Finance Minister said that the Cabinet has approved the Insurance and Credit Guarantee Corporation (AMENDMENT) bill, 2021. This bill will be kept in the monsoon session of Parliament.

This amendment will get the security of account holders and investors. After its approval, the account holders will be found within 90 days limit under insurance on the drowning of a bank. He said that all the commercial operators will come under this, even if he is a rural bank. The Finance Minister told that premium banks for such insurance, no customer.

DICGC is a subsidiary of the Reserve Bank of India and it provides insurance cover on bank deposits. So far the rule was that even if the depositors will not get money, even if the insurance bank does not meet many processes. Because of this, they do not get a penny long. But changes in the act will get relief to customers.

Five lakh insurance

DICGC only ensures that after being ruined a bank, its depositors should return the amount of Rs. 5 lakh. First, the sum insured was only Rs 1 lakh, but the Modi government has increased it to 5 lakh last year.

According to the provisions so far, this return of five lakh rupees is done when a bank's license can be canceled and the process of selling its liquidation i.e. asset etc. But now the government has fixed three months limit for all this.