New Delhi: As part of efforts to revive the ailing economy of the country, Finance Minister Nirmala Sitharman on Friday said the government is planning to bring legislation on raising the insurance cover on bank deposits from the current Rs 1 lakh and regulating multi-state cooperative banks.
She said that the legislation will be brought during the Winter Session of Parliament which is beginning from November 18.
The development comes in the wake of the scam in the Punjab and Maharashtra Cooperative (PMC) Bank which has affected lakhs of customers. The scam over the period of time has led to protest and subsequent deaths of many agitators who had deposited their life savings in the bank.
Talking about addressing the grievances of account holders in the PMC Bank, Sitharaman said that her government has had a discussion with the Reserve Bank and other agencies in this regard.
“We have had a discussion with RBI and other agencies on if any of the confiscated properties of the promoters (PMC Bank) can be brought under the RBI and payback to the customers of Punjab and Maharashtra Co-operative (PMC) Bank,” she added.
The finance minister also informed that the government is not planning to cut spending on welfare schemes and will encourage all the departments of the Union government to spend entire funds provided in the Budget.
Right now, the bank depositors get an insurance cover of Rs 1 lakh on their amount by the Deposit Insurance and credit Guarantee Corporation.
Talking about the losses reported in the telecom sector, the finance minister said that the government doesn’t want any of the telecom firms to be shut down. “Talks are on, and after the Supreme Court’s order even the adjusted gross revenue (AGR) matter has been taken up with telecom firms,” she added.
The developments come nearly two days after the Finance Ministry started planning for the next budget by inviting suggestions on changes in direct and indirect taxes, including their rates, from industry and trade associations.
The finance minister, who had earlier said to announce additional measures to revive the low economy of the country, will present her second Budget for the financial year 2020-21 on February 1.
(With inputs from agencies)