New Delhi, Dec 12 (FN Agency) Prime Minister Narendra Modi on Sunday said that more than one lakh depositors have got their money back that was stuck for years as several banks struggled to stay afloat or sank, thanks to the new law that guarantees timely refunds. As much as Rs 1,300 crores has been refunded to such depositors in the last few days, he said. In a major relief to depositors, especially small ones, the government has raised the bank deposit insurance cover to Rs 5 lakhs from Rs 1 lakh earlier. It has also been provided that the depositors will get their money back within 90 days if a bank is restrained by the RBI. Deposit insurance covers all deposits such as savings, fixed, current, recurring deposits, etc. in all commercial banks, functioning in India. Deposits in State, Central and Primary cooperative banks, functioning in States/Union Territories are also covered. “Understanding the concern of the poor, understanding the concern of the middle class, we increased guaranteed amount to Rs 5 lakh,” said Prime Minister at a function on “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh” here today.
He noted that banks play a major role in the prosperity of the country and for the prosperity of the banks, it is equally important for the depositors’ money to be safe. “If we want to save the bank, then depositors have to be protected,” Modi said. The Prime Minister also handed over cheques to some of the depositors. The Prime Minister said any country can stop the problems from getting worse only by timely resolution of them. However, he said, for years there was a tendency to avoid problems. “Today’s new India strives for solving problems, today India does not avoid problems,” he said. The Prime Minister noted that over the years, by merging many small public sector banks with large banks, their capacity, capability and transparency have been strengthened in every way. When RBI monitors co-operative banks, it increases the confidence of the common depositor in them, he said. Modi said that banking had not reached women of the country in any significant way earlier while his government accorded priority to it. “Of the crores of bank accounts opened under Jan Dhan Yojana, more than half belong to women. The effect these bank accounts have on the economic empowerment of women, we have also seen in the recent National Family Health Survey”, he said.