Rs 1,300 cr returned to depositors that was stuck for years: PM

Affirming that the “concern of poor and middle-class” has been addressed by increasing the  insurance of deposit  to Rs 5 lakh from Rs 1 lakh,  Prime Minister  Narendra Modi on Sunday informed that in the last few days, more than one lakh depositors have got their money back that was stuck for years and “this amount is more than Rs 1,300 crore”.

 Addressing a function on “Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs. 5 Lakh” here,  Modi said “today is a very important day for the banking sector and crores of bank account holders of the country as this day is witnessing how a big problem which was going on for decades has been solved.”

He stressed that the spirit of ‘Depositors First’ is very meaningful and  “in the last few days, more than one lakh depositors have got their money back that was stuck for years. This amount is more than Rs 1300 crore, ” Modi said.

Union Finance Minister, Minister of State for Finance and RBI Governor were among those present on the occasion.

The Prime Minister also handed over cheques to some of the depositors.

The Prime Minister said any country can save the problems from getting worse only by timely resolution of them. However, he said, for years there was a tendency to avoid problems. “Today’s new India strives for solving problems, today India does not avoid problems”, he said.

Modi  informed that in India, the system of insurance for bank depositors came into being in the 60s. Earlier, out of the amount deposited in the bank, only the amount up to 50 thousand rupees was guaranteed. Then it was raised to one lakh rupees.

“Understanding the concern of the poor, understanding the concern of the middle class, we increased this amount to Rs 5 lakh”, the Prime Minister said.

Another problem, he said  was tackled by amending the law. “Earlier where there was no time limit for refund, now our government has made it mandatory within 90 days i.e. 3 months. That is, even in the event of a bank sinking, the depositors will get their money back within 90 days”, he said.