Centre enhanced financing system in last 7 years to benefit the poor: PM Modi

NEW DELHI: Prime Minister Narendra Modi on Sunday, in a veiled assault on the previous government, that the middle and poor classes have repeatedly been harmed by banking crises, but that the current India is committed to fixing these issues.
Speaking at the 'Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh' programme here, the Prime Minister said that the BJP-led Central government has enhanced financing system and has introduced various reforms in the last 7 years to benefit the poor and middle-class individuals.
He said that in the last few days, more than 1 lakh depositors have got their money back which was stuck for years which amounts to more than Rs 1300 crore.
"For years, the attitude of slipping 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 symbolizes 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 added.
Parliament in August had passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, ensuring that account holders get up to Rs 5 lakh within 90 days of the RBI imposing a moratorium on the banks.
This was done keeping the 'Depositors First' spirit in mind, Modi said while announcing that over 1 lakh depositors have got about Rs 1,300 crore of their money with stressed banks in the past few days with the enactment of the legislation.
PM Modi assured that about three lakh more such account holders will get their deposits with the banks that are under the RBI moratorium, soon.
Addressing the event the Prime Minister said banks play an important role in the progress of any nation.
PM also said that "to make the most of this opportunity and establish a sense of trust among our depositors, we have upped the cap from Rs 1 lakh to Rs 5 lakh."
Union finance minister Nirmala Sitharaman and RBI Governor Shaktikanta Das were also present at the event.
Shaktikanta Das cautioned depositors to be careful while chasing high returns as it comes with higher risk.
"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," Das added.
Deposit insurance protects all types of deposits in commercial banks, including savings, fixed, current, and recurring accounts. Deposits in state, central, and primary cooperative banks are likewise insured, as are deposits in states and union territories.
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 per cent of the total number of accounts, as against the international benchmark of 80 per cent.
(With inputs from agencies)