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Modi Government going to take a 'big decision' in the interest of the bank consumers

Saturday - November 16, 2019 3:34 pm , Category : WTN SPECIAL
Modi Government may increase the amount of refund of deposits in the banks
Modi Government may increase the amount of refund of deposits in the banks

PM Modi's 'master stroke' to increase people's confidence in the banking system 

NOV 16 (WTN) - Due to many reasons you keep your money in banks rather than at home. This is why because you think that your money in banks is safe from theft, robbery, and natural disasters. On the other hand, by keeping money in the bank, you are given many types of benefits by the bank. If you think that your money kept in the bank is safe, then you are probably in a big misconception. For your information, let us know that if a bank gets bankrupted or collapsed due to any reason, then you will not get the entire amount deposited by you in any form in the bank. 

Yes, if you have deposited 10 lakh rupees in any form in a bank and if that bank gets bankrupted or collapsed due to any reason, then you will not get the full 10 lakh rupees deposited in that bank. For your information, let us know that after any bank is bankrupted or collapsed, the consumers of that bank cannot claim their entire amount deposited in the bank. According to the rules, in the event of a bank’s being bankrupted or collapsed, consumers of that bank cannot claim more than a certain amount.

The Deposit Insurance and Credit Guarantee Corporation (DICGI) takes a security guarantee to the extent of deposits with banks. For your information, let you know that this corporation is a subsidiary of the Reserve Bank and was established in July 1978. In the event of insolvency or collapses of any bank, this corporation guarantees the depositors of banks up to a maximum of Rs 1 lakh on their deposits. If a bank gets bankrupted or collapsed, then any amount of money of the consumers of that bank is deposited in the bank in any form, they will get a maximum of only 1 lakh rupees after the claim, that too within the time limit of two months. 

All the banks licensed by the Reserve Bank pay a premium to DICGC for the insurance of deposits deposited in their bank every year. For your information, let us know that all deposits including savings account, current account, fixed deposit and recurring deposit of any bank are insured by Insurance and Guarantee Corporation (DICGC). As we told you, only 1 lakh rupees of the bank deposits are insured and this 1 lakh rupee includes both the principal amount and interest. Not only this, but this limit also includes all deposits made in all the branches of a bank.

In fact, since the much-talked-about PMC bank scam, there has been a debate across the country over the future of customer deposits that they can lose millions of rupees if any bank gets bankrupted or collapsed. In 1993, when a bank got bankrupted or collapsed, its consumers would get a maximum of Rs 1 lakh only. But now the need to increase this limit is felt in view of the increase in the limit of inflation and income tax exemption.

The Narendra Modi Government at the Center is going to take a major decision after the PMC bank scam, after the bank's consumers' distress and the public's distrust of the banking system. According to the information, under this decision, the limit of insurance guarantee can be increased on the amount deposited in bank accounts. In this regard, Finance Minister Nirmala Sitharaman said, “Under the Bank Deposit and Loan Guarantee Corporation Act scheme, the insurance of depositors on deposits in banks will be raised above the present limit of Rs 1 lakh.”

According to the information, an amendment bill can be introduced in the Winter Session of Parliament for this. However, there is no information about how much the new limit on insurance can be increased on bank deposits. In fact, after the Punjab and Maharashtra Co-operative Bank Limited (PMC) bank scam, after the debate on increasing the insurance amount of deposits in banks, this initiative of the Modi Government will once again boost the confidence over the banking system. People demand that the maximum amount of their deposits in the bank should be insured so that they can get the maximum amount of deposits if the bank is bankrupted or collapsed due to any reason.