Prime Minister Narendra Modi to address nation on deposit insurance programme today

Prime Minister Narendra Modi will on Sunday address depositors during a programme in Delhi. The Prime Minister’s Office said that the programme titled ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ will be held at 12pm.

Union minister for finance Nirmala Sitharaman, Reserve Bank of India (RBI) Governor ShaktiKanta Das and MoS will also be present at the event.

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“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,” the PMO stated.

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

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

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 RBI.

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The PMO also said that payout of over Rs 1,300 crore has been made to alternate bank accounts of over 1 lakh depositors against their claims.