Risk Based Premium for insured deposits to be introduced
RISK BASED PREMIUM FOR INSURED DEPOSITS: NEED OF THE HOUR INCREASE IN INSURANCE COVER: DICGC, which insures bank deposits of eligible customers of commercial/cooperative banks, has increased its coverage per depositor from Rs. 1 lac to Rs.5 lacs with effect from 4th February 2020. The Act has been amended recently to stipulate, among other things, that the claims of depositors, in the case of invocation of insurance, should be settled within a time period of 90 days. Since the cover is per depositor, DICGC has also given some examples, in its website, as to how the cover can be maximised by holding the deposits in joint names in different styles/capacities. With the increase in insurance amount, 98.1% of the total deposit accounts and 50.9% of the total eligible (assessable) deposit amounts of the covered banks are insured as on 31st March 2021. PMC Bank depositors may be the first set of beneficiaries to receive the claim under DICGC, after the increase in insurance cover and redu...