Impact of PMC scandal, Bank FD's insurance cover to be briefed: Sitharaman

(PTI) New Delhi, Ta. November 15, 2019, Friday

Finance Minister Nirmala Sitharaman said on Friday that the government would soon raise Rs. Up to 1 lakh insurance laws will be enacted to tighten rules for co-operative banks spread across several states. The Center has taken this decision following the impact of millions of depositors due to the PMC Bank scam.

The winter session of Parliament is set to begin on Monday, when the issue will be tabled in this session, he said. He added that work is underway on this and we will get cabinet approval to introduce the bill in the winter session.

The proposed bill will make necessary amendments to the law. Besides, they will be brought under the Banking Regulation Act for the conduct of banking operations of the cooperative sector banks as per law.

Unless practical rules are adopted, many problems that may arise in the PMC bank crisis will never be resolved and the bill will ensure that such incidents do not happen in the future, ”he added.

Regarding raising the deposit guarantee insurance limit, Sitaraman said that this rule may not be part of the law of co-operative banks but it will be part of other laws. We will cover the deposit cover for Rs. We want to raise the minimum amount of 1 lakh.

The government plans to bring the bill during the winter session. This bill is considered very important in the wake of PMC Bank scam. In the scam, millions of consumers were having difficulty withdrawing their full amount due to restrictions imposed by the RBI.

At present, bank depositors have received deposits of up to Rs. 3,000 from Deposit Insurance and Credit Guarantee Corporation. Up to 1 lakh insurance cover is available. The BJP is preparing to introduce a citizenship bill in the winter session, which begins on Monday. The bill is intended to give India's citizenship to bean Muslim immigrants coming from neighboring countries.