Depositors to get up to only ₹5 lakh if bank failed

 DICG Bill cleared:

-"This clearance now, therefore, is going to give relief to all those institutions which have already come under moratorium. It is not going retrospectively back, but if your bank has already been declared under moratorium, this will cover," she adds

-All commercial banks and even branches of foreign banks operating in India will come under the purview of this legislation and this will be applicable to banks which are at present under moratorium, says FM.

-"On 91st or 95th day after the bank is placed under moratorium, you will get your money as the new rules will not wait for the eventual liquidation or resolution," Sitharaman says.

-Even if there's moratorium on bank, this measure will set in. First 45 days will go for banks in distress to hand over to the insurance corporation; within 90 days process will be definitely completed without waiting for resolution, a relief for all banks under moratorium, says FM.

Under DICGC Bill 2021, 98.3% of all deposits will get covered and in terms of deposit value, 50.9% deposit value will be covered. Global deposit value is only 80% of all deposit accounts. It only covers 20-30% of deposit value: Finance Minister Nirmala Sitharaman

-Finance Minister Nirmala Sitharmaan says that the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been cleared today.

-I&B Minister Anurag Thakur begins briefing media.

98.3% of all deposit accounts will get covered, in terms of value of the deposits, over 50% will be covered under DICGC Act, Sitharaman adds

The Union Cabinet on Wednesday is holding a press conference with Finance Minister Nirmala Sitharaman and I&B Minister Anurag Thakur and Minister of State L Murugan in New Delhi.

During the press briefing, the Cabinet cleared Deposit Insurance and Credit Guarantee Corporation (DICGC) Bill and Limited Liability Partnership Amendment Bill.

Sitharaman's press conference comes a day after the International Monetary Fund (IMF) slashed India’s economic growth projection to 9.5% for FY22, down from 12.5% estimated earlier in April this year. IMF said it has revised its outlook due to the “lack of vaccine"

Catch all highlights here:

-A multilateral MoU has been signed between international financial service centres and multilateral agencies, International Organisation of Security Commissions and International Association of Insurance Supervisors: Union Minister Anurag Thakur

-It is one of the biggest multilateral forums; has 124 signatories, he adds.

-Limited Liability Partnership Amendment Bill cleared:

The Union Cabinet decision has today proposed the first amendment to the Limited Liability Partnership act. The act came into existence in 2008-2009.

Total of 12 offences to be decriminalised for LLPs. Many of the startup’s can also benefit from the ease of doing business. Coming up with a new definition of all LLPs. Expanding the scope of what can be a small LLP.

-"As of today, you have 24 penal provisions in the LLP Act, 21 compoundable offences, and 3 non-compoundable offences. "After today penal provisions will be cut to 22, compoundable offences will be only 7, non-compoundable offences will be only 3, and the number of defaults to be dealt will be only 12," the finance minister says.