PM Modi to address function on Depositors First-Guaranteed Time-bound Deposit Insurance Payment up to 5 Lakh tomorrow

New Delhi: Prime Minister Narendra Modi will address the function on  Depositors First-Guaranteed Time-bound Deposit Insurance Payment up to 5 Lakh rupees tomorrow at 12 Noon in Vigyan Bhawan. Union Finance Minister, Minister of State for Finance and RBI Governor will also be present during the occasion.

Deposit insurance covers all deposits such as savings, fixed, current, recurring deposits in all commercial banks functioning in India. Deposits in State, Central and Primary cooperative banks, functioning in States and Union Territories are also covered. In a path-breaking reform, Bank deposit insurance cover was enhanced from one



lakh to 5 lakh rupees.

The number of fully protected accounts at end of previous financial year 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 RBI. Payout of over 1300 crore rupees has been made to alternate bank accounts of over 1 lakh depositors against their claims.