Cabinet Approves Bank Deposit Insurance Payout Within 90 Days

The Union Cabinet on Wednesday approved amendment to the Deposit Insurance Credit Guarantee Corporation or DICGC Act to provide account holders access to up to Rs 5 lakh funds within 90 days of a bank coming under moratorium to ensure timely support to depositors. Each depositors bank deposit is insured upto Rs 5 lakh in each bank for both principal and interest. This will cover 98.3% of all deposit accounts. The government also approved amendments to the Limited Liability Partnership (LLP) Act, including decriminalising 12 offences under the law.

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