Insurance Covers all Deposits in all Commercial Banks
New Delhi: PMO said, Prime Minister Narendra Modi will address a programme, "Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to ? 5 Lakh," on Sunday at Vigyan Bhawan in Delhi.
The Prime Minister's Office further added, Deposit insurance will cover all deposits such as savings, fixed, current and recurring deposits in all commercial banks. Deposits in state, central and primary cooperative banks, functioning in states and union territories will also be covered in this plan.
It further said, bank deposit insurance cover will be enhanced from ? 1 lakh to ? 5 lakh.
With deposit insurance coverage of ? 5 lakh per depositor per bank, the number of fully protected accounts at the end of previous financial year constituted 98.1 per cent of the total number of accounts, an 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 RBI.
The statement said, Payout of over ? 1,300 crore already has been made to alternate bank accounts of over one lakh depositors against their claims.
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