PM Modi says govt intends to introduce uniformity in banking system

Prime Minister Narendra Modi said that enhanced financing system and various reforms have been introduced in the last seven years to benefit the poor and middle-class individuals. Speaking at the Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to five lakh rupees” programme in New Delhi, Modi said, government has always kept the interest depositors first. He said, in the last few days, more than one lakh depositors have got their money back, stuck for years which amounts to more than one thousand 300 crore rupees. Prime Minister said, government has increased the Cap of deposit Insurance from one lakh rupees to five lakh rupees for depositors to build a sense of trust among them in case any bank faces a financial crunch. Modi said, guaranteed time-bound deposit insurance payment of up to 5 lakh rupees will cover almost 98 percent of the depositors accounts.
He said, with this the government has insured more than 76 lakh crore rupees of the depositors. He said, increased depositors’ amount is a landmark reform in the financial system. Prime Minister said, earlier there was no time limit for refund, now the government has made it mandatory that within 90 days, depositors will get their money back. Prime Minister said, government intends to introduce uniformity in the banking system for everyone instead of catering to a reserved section of the society. He said, financial empowerment is our ultimate goal and government will ensure to scale it to new heights with dynamic reforms for the common man.
Speaking on the occasion, Finance Minister Nirmala Sitaraman said that the Modi government has shown a commitment to the depositors. She said, depositors and their interest has been kept high on agenda. Mrs Sitaraman said, today is an important day for depositors and banking history of the country. Reserve Bank of India Governor Shaktikanta Das said, depositors first is the guiding philosophy of RBI in all its actions and policies. He said, deposit Insurance facility in the country has come a long way. Das said, the payment of the deposit insurance amount should be seen as the last resort. He said, depositors also need to be discerning and they should keep in mind that higher rates of interest are usually associated with higher risk. RBI is always proactive to straighten all guidelines to protect depositors interest.