Insurance Reforms Will Build Account Holders’ Confidence In Banking System, PM Modi Says

File photo of PM Narendra Modi | Twitter / @ ANI

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New Delhi: Prime Minister Narendra Modi said on Sunday that the government-initiated deposit insurance reforms will build account holder confidence in the banking system.

In August, Parliament passed the Deposit Insurance and Credit Guarantee Company (Amendment) Bill, 2021, ensuring that account holders get up to Rs 5 lakh within 90 days of the RBI imposition of a moratorium on banks.

This was done with “Depositors First” in mind, Modi said while announcing that more than a lakh of depositors got around Rs 1,300 crore of their money from troubled banks over the past few years. last days with the enactment of legislation.

He assured that around three more lakhs of these account holders would soon get their deposits from banks under the RBI moratorium.

During an event here in Vigyan Bhawan, the Prime Minister said that banks play an important role in the progress of any nation.

“For the growth of banks, the security of depositors’ money is crucial… if we are to save the banks, we must provide security to depositors,” he said.

Deposit insurance covers all deposits such as savings, fixed, current and recurring deposits in all commercial banks. Deposits in state, central and primary cooperative banks operating in states and Union territories are also covered.

With deposit insurance coverage of Rs 5 lakh per depositor and per bank, the number of fully protected accounts at the end of the previous fiscal year represented 98.1% of the total number of accounts compared to the international benchmark of 80 %.

Read also : PM Modi’s Twitter account ‘briefly compromised’, tweets Bitcoin is now legal tender

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