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

Finance Minister Nirmala Sitharaman announced to increase the insurance cover of the existing Rs 1 lakh on bank deposits to Rs 5 lakh in the budget (Budget 2021), giving big relief to the common people.

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 in the Deposit Insurance and Credit Guarantee Corporation Act in Budget 2021.




What is the guarantee that deposits of up to Rs 5 lakh in DICGC banks are guaranteed by Deposit Insurance and Credit Guarantee Corporation. 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.




There will be a change

in the DICGC Act 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.

adding money to the wallet with credit card has become more expensive, know how much will the extra charge finance minister said in his budget speech. “If a bank temporarily fails to discharge its obligations, then 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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