“To save banks, we have to protect depositors”: PM Modi
The Hindu
Prime Minister Narendra Modi was speaking at the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’
Prime Minister Narendra Modi on Sunday said that the move to increase deposit insurance cover to ₹5 lakhs from ₹1 lakh, will fully insure ₹76 lakh crore of savings. “Such a comprehensive insurance cover is not there even in developed nations,” Mr. Modi said adding that, “This will cover almost 98% of all banking accounts.”
Speaking at the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’, Mr. Modi recalled his time as a Chief Minister, “I remember clearly when I was CM and a bank faced problems, people used to catch our necks only…Their pain was natural and at that time, I had repeatedly requested the Govt. of India to raise the ₹1 lakh deposit insurance amount to ₹ 5 lakh so that maximum households are satisfied.”
Beyond this, the Prime Minister also touched upon the move to introduce a 90-day deadline for depositors to get their money back. “I am happy that within 90 days of the law being notified, thousands of depositors have already been repaid,” he said, adding that banks play a big role in the nation’s prosperity, however, to ensure prosperity of bank, money of depositors need to be safeguarded.