Govt will bring legislation on raising

insurance <

Wednesday,20 November 2019 10:02 AM IST

New Delhi: In the midst of concern about the safety of bank deposits from Punjab and Maharashtra Co-Operative (PMC), Finance Minister Nirmala Sitharman said on Friday that the government is considering proposals to raise the insurance cap from existing Rs 1 lakh. In September, the Reserve Bank of India (RBI) placed restrictions on withdrawals at the PMC Bank following suspected Rs 4,355-crore irregularities. The cap has now been increased to Rs 50,000, but the fear of account holders about the future of their deposits has not been allayed. Currently, bank depositors get an insurance cover of Rs 1 lakh on their amount by the Deposit Insurance and Credit Guarantee Corporation.