PM Narendra Modi to address depositors in a bank deposit insurance programme on Sunday

Prime Minister Narendra Modi will address the function on  “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh” on 12th December, 2021 at 12 noon in Vigyan Bhawan.

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. 5 lakh per depositor per bank, the number of fully protected accounts at end of previous financial year constituted 98.1% of the total number of accounts, as against the international benchmark of 80%.

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 1 lakh depositors against their claims.

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Union Finance Minister Nirmala Sitharaman, Minister of State for Finance Pankaj CHaoudhary and Reserve Bank of India (RBI) Governor Shaktikanta Daswill also be present on the occasion.