Parliament passes Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 | Daily Current Affairs 2021

Parliament passes Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021

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Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021: The Parliament, on 9th August 2021, passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 with the Lok Sabha clearing it amid the din.

The Bill has already been approved by Rajya Sabha.

Key Points:

  • It seeks to amend the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
  • The Bill seeks to provide depositors time-bound access to their insured deposit amount, in case they are restricted from accessing their bank deposits.
  • It provides that the Corporation will be liable to pay the insured deposit amount to depositors on an interim basis.
  • The Bill mandates the Corporation to pay the insured amount to the depositors within 90 days of the date such liability arises.

Benefits:

  • The legislation is aimed at supporting small depositors.
  • Depositors of Punjab and Maharashtra Cooperative Bank, Sri Guru Raghavendra Sahakara Bank and others will be benefited from this move. 
  • The insurance cover limit has been raised from one lakh to five lakh.
  • The legislation was passed by the House without any discussion.

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