Why DICGC Act amendment is big news for small depositors The Indian banking system now has a much better safety net for depositors of failing banks compared to what they had till a year ago. February 04, 2021 / 07:29 AM IST The collapse of UCBs like Punjab and Maharashtra Cooperative Bank (PMC Bank) has added to the customers’ distrust. In the 2021 Union Budget, Union Finance Minister Nirmala Sitharaman proposed to amend the Deposit Insurance and Credit Guarantee Corporation Act (DICGC). This is aimed at enabling depositors of troubled banks to access their money through DICGC route even if banks are temporarily unable to meet the obligations. This announcement assumes significance, particularly for smaller depositors. Earlier, DICGC could be invoked only on liquidation of banks.