Live mint reports the government may bring in an amendment to the DICGC Act with a view to affording account holders a hassle-free access to funds to the extent of the deposit insurance cover.
It is worth mentioning that the government had earlier raised insurance cover on deposit five-folds to Rs 5 lakh in order to support depositors of crisis-ridden lenders (PMC Bank and others).
The amendment to the (DICGC) Act, 1961 is an important announcement made by the Finance Minister. It is said the bill is likely to be tabled in the upcoming monsoon session of parliament.
Amendment is welcomed by all the depositores. Wish to suggest One More thing, about the banks going into the loss. If a bank suffers the losses, the loss is directly being transferred to the depositores, but the directors of the bank do not get affected at all. Where as the board is fully responsible for the bad debts, so their assets And bank balance should be attached, to safeguard the interest of the depositors. If such act is implemented, bank losses also will be in control.
This amendment be made applicable to every account or FD and not on the basis of customer ID as multiple accounts could be clubbed under one customer ID.
In last 30-40 years, close to 1 cr depositors of coop banks in Maharashtra must be the impacted – which is 3-4 cr population of Maharashtra alone. Law should include very strict punishment against board/chairman of banks, including confiscation of all property (theirs and family) towards repayment of depositors money.