New India focuses on resolving problems, not delaying resolution: PM Narendra Modi at bank deposit insurance event

PM Narendra Modi was speaking on the sidelines of the ‘‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ event.

New Delhi: Prime Minister Narendra Modi, on Sunday (December 12), said that new India focuses on resolving problems, and not on delaying their resolution. Speaking on the sidelines of ‘‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ event at Vigyan Bhawan, Delhi, he highlighted how deposit insurance and credit guarantee corporations (DICGC) is making sure that bank depositors receive their money back in cases of a bank failure. 

Depositors are being paid back their deposits in case of the collapse of banks, PM Modi said, adding, “There was a time when depositors faced hardship to get back their own money from banks under stress.” 

PM Modi also pointed out due to the lack of any such scheme, poor, middle-class bank customers toiled for years. He informed that so far Rs 1,300 crore have been paid to 1 lakh depositors in 1 year.  

“Depositors are the spirit behind the guaranteed time-bound deposit insurance payment…Govt changed law to provide for depositors to get back their money in a time-bound manner in case banks go down under,” he said. 

The Indian government has increased the amount that depositors can get from banks under stress to Rs 5 lakh from Rs 1 lakh. With this move, about 98% of bank account holders are now covered under the deposit credit guarantee, Modi said. 

“Guaranteed time-bound deposit insurance payment within 90-days covers Rs 76 lakh crore of deposit in banks,” he added. “If banks are to be saved, depositors have to be provided security; we have saved banks, provided security to depositors.” Also Read: PM Kisan Yojana: Centre to release 10th instalment soon; here’s how to check name in beneficiary list

Pointing out the recent banking sector reforms, he said that the government merged smaller banks with larger public sector banks to strengthen their capacity, capability, and transparency. Also Read: THIS Rs 1 note is selling for Rs 7 lakh, check how you can sell it too