the parliament has passed the amendment to the digcg deposit insurance and credit guarantee corporation act 1961 which will allow customers of failed or stressed banks which are placed under moratorium to get their deposits up to rs 5 lakh back within 90 days of start of moratorium the amendment was passed today in lok sabha and was cleared by the rajya sabha on august 4 as explained by the finance minister nirmala sitharaman last week during a press briefing the 90day period will be divided into two periods of 45 days the stressed bank is expected to collate all information regarding the number of claimants and claim amount and inform dicgc about it within the first 45 days within the next 45 days dicgc is mandated to process the claim and make payment to each eligible depositor finance minister nirmala sitharaman said during the press briefing on july 28 2021 the overall insurance amount of rs 5 lakh includes both principal and interest held with the bank in the same right and capacity this move is expected to cover around 983 of total number of accounts and 509 of the value of total deposits held with the banks the fm stated during a debate regarding the dicgc bill in the rajya sabha it was clarified by the finance minister that pmc bank depositors will also get benefit of this amendmentdeposits with all banks are covered under dicgc insurance cover of rs 5 lakh earlier many cooperative banks were not included in this coverage however in 2020 the government introduced an amendment in banking regulation act where rbi was given complete regulatory control over cooperative banks and all banks were put under deposit insurance coveragethe finance minister also informed that the deposit premium that banks pay for the dicgc coverage will increase from rs 10 paise to rs 12 paisa per rs 100 deposit this means that the coverage has been raised by 5 times from rs 1 lakh to rs 5 lakh but the premium that banks pay has gone up only by 20