Deposit Insurance And Credit Guarantee Corporation (Amendment) Bill, 2021:
The Union Cabinet has approved the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 and has been introduced in Parliament’s monsoon session.
- Deposit Insurance Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI).
- It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.
- It protects depositors’ money kept in all commercial and foreign banks located in India; central, state, and urban co-operative banks; regional rural banks; and local banks, provided that the bank has opted for DICGC cover.
- The agency’s operations are performed as per the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961.
- The Bill provides account holders security of their money by allowing access to up to Rs 5 lakh within 90 days of a bank coming under a moratorium.
- Under the latest amendment in the DICGC Bill, 98.3% of all deposits will be covered and in terms of deposit value, 50.9% of deposits will be covered. While the Global deposit value is only 80% of all deposit accounts and covers only 20-30% of the deposit value.