CURRENT AFFAIRS

Detailed explanation-1: -The government has notified the amendment to the DICGC Act on 30 August 2021. Parliament passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to Rs 5 lakh within 90 days of the RBI imposing a moratorium on the banks.

Detailed explanation-2: -Each depositor in a bank is insured upto a maximum of 5, 00, 000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Detailed explanation-3: -Insured banks are given two month time period to make premium payment to DICGC on its total deposits. In case of delay in premium payment, banks are liable to pay penal interest at 8 per cent above the Bank rate from the beginning of the financial half year till the date of payment.

Detailed explanation-4: -The DICGC insures principal and interest upto a maximum amount of ₹ five lakhs. For example, if an individual had an account with a principal amount of 4, 95, 000 plus accrued interest of 4, 000, the total amount insured by the DICGC would be 4, 99, 000.

Detailed explanation-5: -Which banks are insured by the DICGC? Commercial Banks : All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.