The Union Cabinet today (July 28) has passed the Deposit Insurance and Credit Guarantee Corporation Bill, Finance Minister Nirmala Sitharaman said.
After the cabinet meet, Finance Minister in an address to the media said that the bill thus augments the insurance coverage against the deposit at a bank and also reduce the time to recover the same in case the bank runs into financial trouble.
Now as the DICGC bill has been passed, depositors of troubled lenders can retrieve an amount up to Rs. 5 lakh from their bank deposit accounts within 90 days, Union Minister Anurag Thakur said.
"This decision will give relief to depositors whose banks are already under moratorium. We will be nearly covering 98.3 percent of all depositors," Sitharaman said, adding that the bill will be tabled in Parliament in this session itself.
The cabinet also cleared the Limited Liability Partnership Bill, she said.