Depositors being paid back their deposits in case of collapse of banks: PM Modi

New Delhi: Prime Minister Narendra Modi on Sunday addressed a function based on the theme 'Deposit First: Guaranteed time-bound deposit insurance payment up to Rs 5 lakh'. PM Modi said in this program that today is a very important day for the banking sector for the country and for crores of bank account holders of the country. He said that keeping the spirit of Depositors First in the name given to today's event is making it more accurate.

Depositors Programme:

The Prime Minister said that in the last few days, more than one lakh depositors have got their money stuck for years. Modi said that this amount is more than Rs 1300 crore. Modi further said that how a big problem which has been going on for decades has been solved, today is witnessing it. He said that any country can save the problems from getting worse only by solving them on time. But for years there was a tendency to avoid problems.

Speaking at the "Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh" programme. https://t.co/rIGzweiEiV

— Narendra Modi (@narendramodi) December 12, 2021

PM Modi said that today's new India emphasizes on solving problems, today India does not avoid problems. He said that that means if the bank sinks, then there was a provision for depositors to get only one lakh rupees to the depositors. There was no time limit on when this money would also be received. Modi said that understanding the concern of the poor, understanding the concern of the middle class, he increased this amount again to Rs 5 lakh.

Modi said that the system of insurance for bank depositors in our country was made in the 60s. Earlier, out of the amount deposited in the bank, only the amount up to 50 thousand rupees was guaranteed. Then it was increased to one lakh rupees. He has tried to solve another problem by amending the law, he said. Modi further said that earlier where there was no time limit for refund, now our government has made it mandatory within 90 days i.e. 3 months. That is, even in the event of a bank sinking, the depositors will get their money back within 90 days.

Banks play a big role in country's prosperity: Modi

PM Modi said in his address that banks have a big 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. He said that if we want to save the bank, then the depositors have to be given security. He said that over the years, by merging many small public sector banks with big banks, their capacity, capability and transparency have been strengthened in every way. When RBI monitors cooperative banks, it will also increase the confidence of the general depositor in them.

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