The government has notified the General Insurance Business (Nationalisation) Amendment Bill and the Deposit Insurance and Credit Guarantee Corporation (DICGC) (Amendment) Bill, after President Ram Nath Kovind gave his assent to both the laws, reports ET.
The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 was passed by a voice vote amid opposition uproar in the Lok Sabha on Monday. The Rajya Sabha passed the Bill last week.
The amended Act would benefit small depositors.Ms Sitharaman herself said that to begin depositors of 23 co-op banks are going to be benefitted from the new amended DICGC Act.
After the passage of this bill, the deposit insurance coverage in India has gone up to 98.3% and covered deposit value has increased to 50.9%, while the corresponding figures globally are only 80% and 20% – 30%.
Besides PMC Bank, It is being hoped that Depositors of all those Urban Co-op Banks (eg Pen Urban Co-op Bank Ltd, Rupee Bank Ltd from Maharashtra, Guru Raghavendra Co-op Bank Ltd from Karnataka, etc ) – which have been under RBI Directions for several years – will also be covered as a consequence of the proposed Amendment. Some of the Urban Co-op Banks have been under RBI Directions for over 7 to 9 years.
