PM Modi will address depositors in a bank deposit insurance programme titled “Depositors First

On December 12th, 2021 at 12 noon in Vigyan Bhawan, Prime Minister Shri Narendra Modi will speak at a programme titled “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh.”

Deposit insurance covers all deposits in all commercial banks in India, including savings, fixed, current, and recurring accounts. Deposits in State, Central, and Primary cooperative banks in States and Union Territories are also covered. Bank deposit insurance coverage was increased from Rs. 1 lakh to Rs. 5 lakh in a ground-breaking change.

With deposit insurance coverage of Rs. 5 lakh per depositor per bank, fully covered accounts accounted for 98.1 percent of total accounts at the end of the previous financial year, compared to a worldwide benchmark of 80 percent.

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. Over Rs 1300 crore has been paid to over 1 lakh depositors’ other bank accounts in response to their claims.

The Union Finance Minister, the Minister of State for Finance, and the Governor of the Reserve Bank of India will all be in attendance.