Nod for Deposit insurance bill amendment; deposits up to Rs 5 lakh will be insured

The Union Cabinet on Wednesday approved amendment to the DICGC Act to provide account holders access to up to Rs 5 lakh funds within 90 days of a bank coming under moratorium to ensure timely support to depositors.

The Bill is expected to be introduced in the current monsoon session, Finance Minister Nirmala Sitharaman said, while sharing details about the Cabinet meeting.

Once the Bill becomes law, it will provide immediate relief to thousands of depositors, who had their money parked in stressed lenders such as PMC Bank and other small cooperative bank