Depositors Insurance : Relief To Those Aggrieved By Moratorium Restrictions

• Speaking at the” Depositor’s First: Guaranteed Time-Bound Deposit Insurance Payment upto Rs. 5 lakh Here”( yes that’s the name of the program) PM Narendra Modi said that the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 passed by the ruling government will “instill confidence in account holders” on the banking system as the depositor’s money will remain safe even in the case of a future bank failure.
• Earlier , out of the deposited amount , only Rs. 50,000 was insured which was later increased to Rs. 1,00,000. But keeping the security of the middle and lower strata of the society in mind , the present BJP-led government has increased the limit of the insurance amount to Rs. 5,00,000.
• Further , the time-limit of refund has been fixed at 90 days which was absent earlier.
• The first batch of interim payments has been released by the Deposit Insurance and Credit Guarantee Corporation recently against the claims received from depositors of 16 Cooperative Banks on which restrictions were imposed by the RBI. The next batch will be released on 31 December, 2021.

A couple of interesting MCQs for our Aspirants:

1. What is the name of the new bill passed by the parliament safeguarding Depositor’s Interests?
2. The limit of insurance refund amount has been increased from 1 lakh to ________?
3. What is the newly stipulated time limit to be followed by RBI to release the money to the aggrieved depositors under the scheme?

Tell us the answers in the comments below!
(That is how you will remember them in the examination hall)