Parliament has passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 with the Lok Sabha clearing it today amid din. The Rajya Sabha has already approved the Bill. It seeks to amend the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The Bill seeks to provide depositors time-bound access to their insured deposit amount, in case they are restricted from accessing their bank deposits. It provides that the Corporation will be liable to pay the insured deposit amount to depositors on an interim basis. The Bill mandates the Corporation to pay the insured amount to the depositors within 90 days of the date such liability arises.
Speaking on the Bill, Finance Minister Nirmala Sitharaman said, the legislation is aimed at supporting the small depositors. She said depositors of Punjab and Maharashtra Cooperative Bank, Sri Guru Raghavendra Sahakara Bank and others will be benefited with this move. The Minister said the insurance cover limit has been raised from one lakh to five lakh. The House passed the legislation without any discussion.