The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill bill will be introduced in Parliament in the monsoon session itself.
New Delhi: A big decision has been taken by PM Narendra Modi-led government for bank account holders. The Union Cabinet on Wednesday approved the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 that provides account holders security of their money by allowing access to up to Rs 5 lakh within 90 days of a bank coming under moratorium.
The meeting of the Union Cabinet was held under the chairmanship of PM Modi. This bill will be introduced in Parliament in the monsoon session itself.
Giving information about the decisions of the cabinet, Union Minister Anurag Thakur said that Deposit Insurance Credit Guarantee Corporation (DICGC) was formed because bank depositors faced problems while withdrawing their money from banks if RBI imposed moratorium. Last year, the Finance Minister had increased its limit from 1 lakh to 5 lakh, and on Wednesday, it has been decided that within 90 days, up to Rs 5 lakh will be paid to the depositors.
Under the DICGC Bill 2021, 98.3% of all deposits will be covered and in terms of deposit value, 50.9% of deposits will be covered. Global deposit value is only 80% of all deposit accounts. It covers only 20-30% of the deposit value.
Notably, after the collapse of PMC Bank, other lenders like Yes Bank and Lakshmi Vilas Bank also came under stress.
Apart from this, the cabinet has also approved the Limited Liability Partnership (Amendment) Bill 2021. This bill will remove the troubles caused by small mistakes in the business so that honest businessmen do not have to face unnecessary trouble. The cabinet approved the creation of posts for officers of Joint Secretary and above in the Ministry of Co-operation.
Finance Minister Nirmala Sitharaman said, "We are expanding the scope of small LLPs. LLPs with contribution of less than or equal to Rs 25 lakhs and LLPs with turnover less than Rs 40 lakhs are considered as small LLPs. Now, the range will be from Rs 25 lakh to Rs 5 crore. The size of the business will be considered to be Rs 50 crore."
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "banks")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}