Union Finance Minister Nirmala Sitharaman has announced that the Cabinet has cleared the Deposit Insurance Credit Guarantee Corporation (DICGC) Bill, which would insure an amount of Rs 5 lakh stored in bank accounts.
After the Deposit Insurance Credit Guarantee Corporation Bill is enacted into a law, depositors of troubled lenders would be able to retrieve up to Rs 5 lakh from their bank accounts within 90 days. The DICGC will insure bank deposits such as savings, FDs, current or recurring deposits. It will also cover commercial, public, private sector banks & branches of foreign banks in India. Under DICGC Bill 2021, 98.3% of all deposits will get covered and in terms of deposit value, 50.9% deposit value will be covered. Global deposit value is only 80% of all deposit accounts. It only covers 20-30% of deposit value,” Sitharaman said.
Apart from DICGC Bill, the Cabinet has also cleared the proposed amendments to Limited Liability Partnership Act. The Union Cabinet, in the meeting held today, has decided to propose the first amendment to the Limited Liability Partnership Act, Sitharaman said. She further said “An amendment has been proposed in the Limited Liability Partnership Bill for the first time. We are doing a lot of changes in the Companies Act and corporate bodies are getting a lot of ease of doing business. LLPs are becoming popular among startups.