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Key Takeaways From PM 'Depositors First' Address

Ashish Sinha Dec 12, 2021

Prime Minister Narendra Modi addressed a function on “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh” in New Delhi on Sunday, 12 November.
Union Finance Minister, MoS Finance and RBI Governor were among those present on the occasion.

Key Takeaways:

More than one lakh depositors have got their money back that was stuck for years. This amount is more than Rs 1300 crore.
Guaranteed amount increased to Rs 5 lakh from earlier Rs 1 lakh.
Mandatory for banks to refund within 90 days — Earlier there was no time limit for refund.
Banks play a major role in the prosperity of the country. For the prosperity of the banks, it is equally important for the depositors' money to be safe. If we want to save the bank, then depositors have to be protected.
Of the crores of bank accounts opened under Jan Dhan Yojana, more than half belong to women.
With deposit insurance coverage of Rs. 5 lakh per depositor per bank, 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.
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. In a path breaking reform, Bank deposit insurance cover was enhanced from Rs. 1 lakh to Rs. 5 lakh.
Today, in almost every village of the country, the facility of a bank branch or a banking correspondent has reached within a radius of 5 km.

Ashish Sinha

BW Reporters Ashish Sinha is an experienced business journalist who has covered FMCG, auto, infrastructure, tourism, telecom among several other beats. Ashish has keen interest in the regulatory scenario impacting different sectors. He writes on aviation, railways, post and telegraph, infrastructure, defence, media & entertainment, among a wide variety of other subjects.