Depositors to get up to Rs 5 lakh within 90 days if bank under moratorium

The announcement covers 98.3% of all deposit accounts and 50.9 per cent of the deposit value, Finance Minister Nirmala Sitharaman said

The Union Cabinet has cleared the Deposit Insurance and Credit Guarantee Corporation (DICGC) Bill, 2021, which will allow depositors to withdraw up to Rs 5 lakh in 90 days.

The announcement will cover 98.3 per cent of all deposit accounts and 50.9 per cent of the deposit value, Finance Minister Nirmala Sitharaman said on Wednesday. This compares with the global deposit insurance coverage of 80 per cent of all accounts and 20-30 per cent of the deposit value.

“Even if there is a moratorium on a bank...this measure will set in,” Sitharaman said. In the first 45 days, after the