The Parliament has passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021. The Deposit Insurance and Credit Guarantee Corporation Act, 1961 is being amended to enable easy and time-bound access by depositors to their own money, even when there are restrictions on banks. It is proposed to provide that even if a bank is temporarily unable to fulfil its obligations due to restrictions such as moratorium imposed on it, depositors can access their deposits to the extent of deposit insurance cover through interim payments by the Corporation.
The Bill provide for the following:
- Enables the Corporation to raise the ceiling on the amount of premium with previous approval of the Reserve Bank of India;
- Enable interim payment to be made by the Corporation to depositors in those banks for whom any direction or prohibition or order or scheme under any of the provisions of the Banking Regulation Act, 1949 has been issued, imposing restrictions on depositors in the banks from accessing their deposits;
- Enable the Corporation to defer or vary the receipt of repayments due to it from the insured bank and to empower the Corporation to charge penal interest in case of delay in repayment by the banks to the Corporation.
