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TIL Desk/Business/New Delhi/ Finance Minister Nirmala Sitharaman has said that she is closely monitoring the developments at Punjab and Maharashtra Cooperative (PMC) Bank and the government could consider raising deposit guarantee limit from existing Rs 1 lakh.
The Deposit Insurance & Credit Guarantee Corporation (DICGC) insures each depositor in a bank up to a maximum of Rs 1 lakh for both principal and interest as on the date of liquidation/cancellation of the affected bank”s licence or from the date of amalgamation/merger.
In this context post the PMC Bank scam which has left depositors worried, the minister said she had discussion with RBI Governor Shaktikanta Das that if deposit guarantee of Rs 1 lakh can be released instantaneously. But he informed that the deposit guarantee is released after the bank is closed and can not be released if the bank is a going concern, she added.
