Sitharman said the government will bring legislation on raising insurance cover on bank deposits from the current limit of Rs 1 lakh.
Amid concern over the safety of Punjab and Maharashtra Co-Operative (PMC) Bank deposits, Finance Minister Nirmala Sitharman on Friday said the government is considering proposals to increase the insurance limit from current Rs 1 lakh.
The Reserve Bank of India (RBI) had in September placed restrictions on withdrawals following alleged irregularities of Rs 4,355-crore at the PMC Bank. The limit has now been raised to Rs 50,000 but this has not allayed account holders' concern over the future of their deposits.
Currently, bank depositors get an insurance cover of Rs 1 lakh on their amount by the Deposit Insurance and Credit Guarantee Corporation.
Speaking in New Delhi, Sitharman said the government will bring legislation on raising insurance cover on bank deposits from the current limit of Rs 1 lakh.
The government is also mulling legislation to regulate multi-state cooperative banks, PTI reported. These legislations will be brought during the Winter Session of Parliament which is starting on Monday and will continue till December 13.
Her statement came amid calls for action following the PMC Bank scam that has affected lakhs of customers.
Speaking on the matter of returning deposits of PMC Bank customers, Sitharaman said, "We have had a discussion with RBI and other agencies on if any of the confiscated properties of the promoters (PMC Bank) can be brought under RBI and pay back to the customers of PMC Bank."
The Economic Offences Wing of Mumbai Police is currently probing an alleged fraud of Rs 4,355 crore in the PMC Bank.
The Enforcement Directorate (ED) has also registered a case and is probing money laundering by the accused.
Eight people including former PMC Bank chairman Waryam Singh, former managing director Joy Thomas, and HDIL promoters Rakesh Wadhawan and Sarang Wadhawan are in police custody in connection with the alleged bank fraud.
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