New Delhi: Prime Minister Narendra Modi will address a function on the “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. five lakh” on Sunday.
The deposit insurance covers all deposits such as savings, fixed, current, recurring deposits, etc in all commercial banks, functioning in India. Deposits in State, Central and Primary cooperative banks, functioning in States/Union Territories are also covered. In a path-breaking reform, bank deposit insurance cover was enhanced from Rs. 1 lakh to Rs. 5 lakh.
With deposit insurance coverage of Rs five lakh per depositor per bank, the number of fully protected accounts at the end of previous financial year constituted 98.1 per cent of the total number of accounts, as against the international benchmark of 80 per cent, an official statement said here.
The first tranche of interim payments has been released by the Deposit Insurance and Credit Guarantee Corporation recently against claims received from depositors of 16 Urban Cooperative Banks, which are under restrictions by RBI. Payout of over Rs 1300 crore has been made to alternate bank accounts of over one lakh depositors against their claims.
Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das will also be present on the occasion.
