New Delhi. Prime Minister Narendra Modi on Sunday said that now depositors’ money does not sink when banks sink and their deposits are paid in a time bound manner. Addressing the ‘Depositor First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’ program at Vigyan Bhawan here, Modi said there was a time when depositors struggled to get their money back from stressed banks.
Speaking at the “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh” programme. https://t.co/rIGzweiEiV
— Narendra Modi (@narendramodi) December 12, 2021
The poor, middle class struggled with this problem for years. Modi said, “If banks have to be saved, depositors have to be protected. We have given this protection to the depositors by saving the banks.” “Depositors are the driving force behind guaranteeing deposit insurance payouts. 1,300 crore has been paid to one lakh depositors in a year.
The Prime Minister said that the government has made changes in the law so that in case of closure of banks, depositors are paid their deposits in a time bound manner. Modi said the government has increased the amount received by the depositors from stressed banks from Rs 1 lakh to Rs 5 lakh. It covers 98 percent of account holders. He said that deposits of Rs 76 lakh crore in banks come under the ambit of guaranteed time bound deposit insurance payment within 90 days.
On reforms in the banking sector, the Prime Minister said that small banks are being merged with large public sector banks to enable them, increase their efficiency and transparency. He said that women are getting the maximum benefit of financial inclusion and easy access to credit.