Insurance protection of money deposited in banks will be increased, regulation of cooperative banks will be made law: Sitharaman

Insurance protection of money deposited in banks will be increased, regulation of cooperative banks will be made law: Sitharaman 

The central government is set to increase the limit of insurance guarantee on deposits in bank accounts amid the controversy arising out of the PMC sector bank scam. For this, an amendment bill can be introduced in the winter session of Parliament.

Finance Minister Nirmala Sitharaman gave this information in conversation with reporters here. Currently, one lakh rupees insurance guarantee is available on the deposits in the banks, meaning if you have deposited five lakh rupees in the bank and the bank sinks then you will get one lakh rupees.

Not disclosed on guarantee limit

Sitharaman said on Friday that the present protection of depositors under the Bank Deposit and Credit Guarantee Corporation Act scheme would be currently above the limit of Rs one lakh. The Finance Minister did not say what the new limit of insurance protection would be on bank deposits. The limit of Rs 1 lakh was fixed in 1993, which is felt to be increased in view of the increase in inflation and income tax exemption limit.

 New law to regulate cooperative banks

He said that churn is going on in the matter of bringing multi-state cooperative banks under the ambit of regulation. Cooperative banks can also be brought under the ambit of banking regulation law in terms of regulation. All related laws are being considered in this regard and 'it is expected that the Union Cabinet will approve the bill in this regard soon and it will be introduced in the forthcoming session of Parliament itself.'

Credit Guarantee Corporation Act made in 1961

The Deposit Insurance and Credit Guarantee Corporation Act came into existence in 1961. The corporation formed under it is a wholly owned company of the Reserve Bank of India (RBI). It was established in July 1978. In the event of a bank collapses, this corporation gives a guarantee of up to one lakh rupees to the deposit holders of the banks on their deposits. After the amendment in 1993, the deposit guarantee amount was increased to one lakh rupees.

NBFC convenes meeting on debt

Regarding providing cash from banks to non-banking financial companies (NBFCs), the Finance Minister said, "A meeting with banks has been called next week. Data has been called from all banks. Information about this has also been sought from the Reserve Bank. Only then can we get clear information in this regard. ”The Finance Minister was asked that the government had taken the initiative to provide liquidity from banks to NBFCs, how much cash has reached NBFCs till now. There are reports that only highly rated NBFCs have received cash from banks.

Disinvestment plans are increasing.

On the issue of disinvestment, the Finance Minister said that all the disinvestment plans including Air India are going ahead. Things are moving fast. Working closely with other ministries. He said, "At the moment it can be said that we are moving forward. After some time things will become more clear. '