Prime Minister Narendra Modi said on Sunday that in the last few days over one lakh depositors have got their money back that was stuck for years. This amount is more than Rs 13 billion, he added.
Addressing an event ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ in New Delhi, the PM noted that the spirit of ‘Depositos First,’ is very meaningful. “Understanding the concern of the poor, understanding the concern of the middle class, we increased insurance for bank depositors to Rs 5 lakh. Even in the event of a bank sinking, the depositors will get their money back within 90 days. If we want to save the bank, then depositors have to be protected.”
PM Modi noted that over the years, by merging many small public sector banks with large banks, their capacity, capability, and transparency have been strengthened in every way. When RBI monitors cooperative banks, it increases the confidence of the common depositor in them.
With insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at end of the previous financial year constituted 98.1% of the total number of accounts, as against the international benchmark of 80%.
Union Finance Minister, MoS Finance, and RBI Governor were among those present on the occasion. The PM also handed over cheques to some of the depositors. The first tranche of interim payments has been released to alternative bank accounts of depositors by the Deposit Insurance and Credit Guarantee Corporation recently, against claims received from depositors of 16 urban cooperative banks, which are under restrictions by RBI.
