Prime Minister Narendra Modi will speak at the Vigyan Bhavan in Delhi today at a programme titled “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to 5 Lakh.”
“Deposit insurance protects all deposits in all commercial banks in India, including savings, fixed, current, and recurring deposits. Deposits in state, central, and primary cooperative banks that operate in states and union territories are likewise protected “The PMO stated.
“Bank deposit insurance cover was increased from 1 lakh to 5 lakh in a ground-breaking change,” it stated.
Union Finance Minister Nirmala Sitharaman, the Minister of State for Finance, and the Governor of the Reserve Bank of India will also be present, according to an official statement from the Prime Minister’s Office.
With a deposit insurance coverage of $5 lakh per depositor per bank, fully covered accounts accounted for 98.1 percent of total accounts at the end of the preceding financial year, compared to a worldwide average of 80%.
The Deposit Insurance and Credit Guarantee Corporation recently released the first tranche of interim payments in response to claims submitted from depositors of 16 Urban Cooperative Banks that are subject to RBI limitations. According to the PMO, over 1,300 crore has been paid into the alternate bank accounts of over 1 lakh depositors in response to their claims.