Banks will get the benefit of deposit insurance of 5 lakhs on time, DICGC Act will change soon

new Delhi. Finance Minister Nirmala Sitharaman has given a big relief to people who deposit their hard earned money in bank accounts. In fact, the Finance Minister has proposed an amendment to the Deposit Insurance and Credit Guarantee Corporation Act in Budget 2021.

What is DICGC
Deposit insurance and credit guarantee corporation is guaranteed by deposits of up to Rs 5 lakh in banks. DICGC is a subsidiary owned by the Reserve Bank of India, which provides insurance cover on bank deposits. According to the provisions of deposit insurance of 5 lakhs, the amount of up to Rs 5 lakhs is paid to the depositor, irrespective of how much money is deposited in the bank, if the bank goes bankrupt or its license is canceled.

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DICGC Act will change in the current budget session itself

Sitharaman has announced that a proposal will be brought in the current budget session by amending the DICGC Act 1961, so that the provisions can be streamed.

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The Finance Minister said in his budget speech. “If a bank temporarily fails to discharge its obligations, the person depositing in such bank will be able to easily and timely get his deposit to the extent to which he has got insurance cover.”

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