The Union Cabinet onWednesday approved amendment to the DICGC Act to provide account holders accessto up to Rs 5 lakh funds within 90 days of a bank coming under moratorium toensure timely support to depositors.
Under the DICGC, eachdepositor’s bank deposit is insured up to Rs 5 lakh in each bank (for bothprincipal and interest). The increase of insured amount from Rs 1 lakh to Rs 5lakh will cover 98.3 per cent of all deposit accounts and 50.9 per cent ofdeposit value, Sitharaman noted.
The immediatebeneficiaries of the DICGC Act amendments will be thousands of depositors ofbanks like PMC Bank, Yes Bank and Lakshmi Vilas Bank.
“Normally, it takes8-10 years after complete liquidation to get money under insurance; but now,even if there is a moratorium, within 90 days, the process will definitely becompleted, giving relief to depositors, the finance minister said.
Apart from theamendment to the DICGC Bill, Cabinet also cleared amendments to the LimitedLiability Partnership (LLP) Bill, with an aim to decriminalise variousprovisions under the law and foster the ease of doing business in the country.
“With the LimitedLiability Partnership Amendment Bill, we will have only 22 penal provisions, 7compoundable offences, 3 non-compoundable offences,” Sitharaman said.
Finance MinisterNirmala Sitharaman said, "We are expanding the scope of small LLPs. LLPswith contribution of less than or equal to Rs 25 lakhs and LLPs with turnoverless than Rs 40 lakhs are considered as small LLPs. Now, the range will be fromRs 25 lakh to Rs 5 crore. The size of the business will be considered to be Rs50 crore."