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finance | IST

Govt may propose 90-day time limit to avail deposit insurance cover

Mini

The government is looking to propose a 90-day time limit to avail deposit insurance cover, sources informed CNBC-TV18.

The government is looking to propose a 90-day time limit to avail deposit insurance cover, sources informed CNBC-TV18. For the same, the government is working on Deposit Insurance Credit Guarantee Corporation (DICGC) Act amendments, which will be tabled in Parliament after Cabinet nod, sources said.
This 90-day time limit will likely be made to avail deposit insurance for banks in distress, they added.
Deposit insurance is a protection cover against losses accruing to bank deposits if a bank fails financially and has no money to pay its depositors.
Earlier, FM had proposed “easy and time-bound” access to deposits for banks that are temporarily unable to fulfill obligations.
As per the current rule, the limit of the total amount payable by DICGC to any depositor with respect to the deposits with the bank is Rs 5 lakh.