PM Modi to Address “Deposit Insurance Programme” Today

PM Modi will address the programme on ‘Depositors First: Guaranteed Time Bound Deposit Insurance Payment’ up to Rs 5 Lakh today. As per an official statement from ‘Prime Minister’s Office, Union Finance Minister Nirmala Sitharaman, MoS Finance & RBI Governor will also be present on the occasion. 

This is being viewed as a very important address by the Prime Minister. All Indians including the farming community is waiting eagerly to listen to PM Modi. 

“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," said PMO."In a path-breaking reform, bank deposit insurance cover was enhanced from Rs 1 lakh to Rs 5 lakh," it added.  

With deposit insurance coverage of Rs 5 Lakh per depositor per bank, the number of fully protected accounts at the end of previous fiscal constituted 98.1 percent of the total number of accounts, as against the international benchmark of 80 percent. 

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 the RBI. 

Payout of over Rs 1,300 crore has been made to alternate bank accounts of over one lakh depositors against their claims, the statement said. 

How will you know whether your Bank Deposits are Insured or not? 

The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the branch official in this regard. 

If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.