Prime Minister Narendra Modi will address the function on “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh” tomorrow at Vigyan Bhawan in New Delhi.
Deposits in State, Central and Primary cooperative banks, functioning in States/Union Territories are also covered. Deposit insurance covers all deposits such as savings, fixed, current, recurring deposits, etc. in all commercial banks, functioning in India. In a path-breaking reform, Bank deposit insurance cover was enhanced from Rs 1 lakh to Rs 5 lakh.
With deposit insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at the end of the previous financial year constituted 98.1 per cent of the total number of accounts, as against the international benchmark of 80 per cent.