Bank depositors to get Rs 5 lakh in 90 days

Finance Minister Nirmala Sitharaman has announced that the Union Cabinet has cleared the amendment to the Deposit Insurance Credit Guarantee Corporation (DICGC) Bill, 2021, which will provide account-holders an amount of up to Rs 5 lakh within 90 days of a bank failure. The DICGC Bill insures all bank deposits and covers all commercial banks, the minister has said. Under the DICGC, each depositor’s bank deposit is insured up to Rs 5 lakh in each bank (for both principal and interest). The insured amount of Rs 5 lakh will cover 98.3 per cent of all deposit accounts and 50.9 per cent of deposit value.