new delhi finance minister nirmala sitharaman on friday said the centre is set to raise the insurance cover for bank deposits beyond the current level of rs 1 lakh while amending the law to improve rbis oversight on multistate cooperative banksthe twin moves follow the recent collapse of pmc bank with sitharaman saying the idea is to ensure that the banking function of cooperatives is brought under the banking regulation act so that there is compliance with prescribed prudential normscurrently multistate cooperatives are under the regulatory purview of rbi as well as state cooperative societies leaving scope for misusealthough the minister did not specify the proposed amount she said the government would amend the law to provide a higher limit as the current cover was decided several years agowhile the deposit insurance extended in india covers 70 of depositors in terms of number only 78 of the base comprises deposits below rs 1 lakhrbi evaluating if pmc assets can be sold to recover moneythe issue of deposit insurance has come to haunt several depositors of pmc bank who had parked their entire savings in the scamhit entity and are now facing curbs on withdrawal with no certainty of recovering their hardearned money the finance minister said that rbi was evaluating if the assets of pmc bank could be sold to recover money which could be disbursed to the depositorsthe minister also said that the government was reviewing if the assistance extended by banks to nonbank finance companies was limited to only a handful of toprated entities while pointing out that the indian banks association had indicated that the special funding facility could be extended to investmentgrade nbfcs as well the government has asked for data on the assistance made to aaarated companies and a decision will be taken soonnbfcs have been reeling under distress due to liquidity squeeze as banks became reluctant to provide funds and there was risk aversion in the financial sector after the collapse of ilfs and problems at dhflmeanwhile four housing projects have made a preliminary pitch from the rs 25000 crore real estate fund announced by the government less than 10 days ago to enable completion of delayed flatsthe initial interest has come from projects in mumbai hyderabad and bangalore which is being looked into by the government