DICGC Amendment Bill 2021 PASSED in Parliament: Big relief for customers of banks facing RBI restrictions—Check other salient features of this amendment

Deposit Insurance and Credit Guarantee Corporation (DICGC) (Amendment) Bill 2021: The preamble of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961 states that it is an Act to provide for the establishment of a Corporation for the purpose of insurance of deposits and guaranteeing of credit facilities and for other connected matters. It has to be noted that the DICGC Amendment Bill 2021 has been passed in the Monsoon session of the parliament.

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There are certain key features associated with the amendment. It has to be noted that following the passage of this bill, the deposit insurance coverage in India has gone up to 98.3 per cent. Furthermore, the covered deposit value has increased to 50.9 per cent. Meanwhile, the corresponding figures globally are 80 per cent and 20-30 per cent, respectively.

The Ministry of Finance has recently tweeted about this DICGC Amendment Bill 2021. The tweet said, "The Deposit Insurance & Credit Guarantee Corporation (DICGC) (Amendment) Bill, 2021, has been passed by Parliament."

The Deposit Insurance & Credit Guarantee Corporation (DICGC) (Amendment) Bill, 2021, has been passed by Parliament. The salient features of the bill are #ParliamentMonsoonSession pic.twitter.com/zeFrvOtwT0

— Ministry of Finance (@FinMinIndia) August 10, 2021

The key features of the DICGC Amendment Bill 2021 are as follows:

1) Interim payment to be made by DICGC to depositors in those banks for whom any restrictions/ moratorium have been imposed by RBI under the BR Act.

2) The depositors will be able to access their own money (ordinarily payable on demand) without waiting for years till liquidation, etc.

3) The clear-cut timeline of maximum of 90 days provided for interim payment to depositors

4) The provision of cover existing cases where banks are already under restrictions

5) It also enables timely repayment of DICGC and expedites recoveries

6) It further enables ceiling on premium to be notified by DICGC, with the prior approval of RBI

One can login to the official website of DICGC at dicgc.org.in for further details about the functioning of the organisation.