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What the Budget means for you

Budget 2021: Relief for depositors! Now time-bound access to deposits if bank goes bust

Relief for bank depositors, FM promises easy and time-bound access to DICGC cover if bank goes bust

 3 Finance minister (FM) Nirmala Sitharaman today announced that in case a bank fails or withdrawals from the bank are stopped due to financial pressure on the bank, the depositors of that bank will be able to get immediate access to their deposits up to the deposit insurance amount of Rs5 lakh, i.e., the amount to which deposits are insured under the ‘Deposit Insurance and Credit Guarantee Corporation Act, 1961 (DICGC Act). This will greatly help depositors in meeting immediate financial needs. The FM added that she will bring in an amendment to allow this in the current Budget session.

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