Addressing the programme on Sunday virtually, Modi said that the BJP-led Central government has enhanced financing system and has introduced various reforms in the last seven years to benefit the poor and middle-class individuals
File photo of Prime Minister Narendra Modi. AFP
Prime Minister Narendra Modi on Sunday addressed depositors in a bank deposit insurance programme, “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh” at Vigyan Bhawan in Delhi.
According to a report by ANI, Modi said that the middle and poor class have time and again suffered from the banking crisis, but present India is determined on resolving these problems.
Speaking at the programme, the prime minister said the BJP-led Central government has enhanced its financing system and has introduced various reforms in the last seven years to benefit the poor and middle-class individuals.
He informed, the system of insurance for bank depositors came into being in the 60s. Earlier, out of the amount deposited in the bank, only the amount up to 50,000 was guaranteed. Then it was raised to one lakh rupees, that is, if the bank sank, then the depositors had a provision to get only up to one lakh rupees. There was, however, no time limit on when this money would be paid.
“Understanding the concern of the poor, understanding the concern of the middle class, we increased this amount to Rs 5 lakh”, he said.
Another problem was tackled by amending the law. “Earlier where there was no time limit for refund, now our government has made it mandatory that in the event of a bank sinking, the depositors will get their money back within 90 days”, he said.
The prime minister added that in the last few days, more than one lakh depositors have got their money back which was stuck for years which amounts to more than Rs 1,300 crore.
“For years, the attitude of hiding the problems under the carpet was prevalent in our country. Our middle and poor class have time and again suffered from the banking crisis. But today’s new India is determined on resolving these problems,” PM Modi said.
“Today is an important day for the banking sector and account holders. Today symbolises the fact that the government has always kept the ‘Depositors First’. Depositors first, the name of this programme reflects our priority and responsibility towards them and their needs,” he said.
“We have increased the cap from Rs 1 lakh to Rs 5 lakh for these depositors to make the most out of this opportunity and build a sense of trust among our depositors,” he added.
As per ANI, Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were also present at the event.
At the event, Modi also handed over symbolic cheques to the depositors of the banks that failed to return their money, under the ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 Lakh’ scheme.
“The country has demonstrated of working together during this COVID pandemic. India’s moment has come where India can really become a gross driver of the world economy. That will be possible if all stakeholders in the banking sector work together,” Shaktikanta Das said.
With deposit insurance coverage of Rs 5 lakh per depositor per bank, the number of fully protected accounts at end of the previous financial year constituted 98.1 percent of the total number of accounts, as against the international benchmark of 80 percent.
With inputs from agencies
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