Dicgc Act
New Delhi, Feb. Feb 1 (IANS): The government will provide full security of deposits made by bank customers by carrying amendment to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961 in the current session of Parliament.
The amendment will increase the Deposit Insurance cover from Rs 1 lakh to Rs 5 lakhs for bank customers. This would mean that if a bank is temporarily unable to fulfil its obligations towards deposits, the depositors of such a bank can get easy and time-bound access to their deposits to the extent of the deposit insurance cover.
Last year, Government had approved an increase in the Deposit Insurance limit for bank customers. The amendment to the Act will now give legal cover to such insurance.
Deposit Insurance and Credit Guarantee Corporation (DICGC)Created OnMarch 5, 2021Last Updated OnMarch 5, 2021bySuganya Arumugam You are here: Main Deposit Insurance and Credit Guarantee Corporation (DICGC). The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 1, 1962.
'I shall be moving amendments to the DICGC Act, 1961 in this Session itself to streamline the provisions This would help depositors of banks that are currently under stress,' finance minister Nirmala Sitharaman said in the budget speech.
Dicgc Act Amendment
The Finance Minister further said that to improve credit discipline while continuing to protect the interest of small borrowers, the minimum loan size eligible for debt recovery in the case of NBFCs is being reduced.
Dicgc Act India
For NBFCs with minimum asset size of Rs 100 crores, the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is proposed to be reduced from the existing level of Rs 50 lakhs to Rs 20 lakhs.