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The government has listed a Bill for the Monsoon Session of Parliament to enable deposit insurance cover of ₹5 lakh. However, it has not included a Bill to ban private cryptocurrencies.
New Bills
It has prepared a list of 17 new Bills to be introduced during the session. This includes a Bill to amend the Deposit Insurance and Credit Guarantee Corporation Act (DIGCS), the Limited Liability Partnership Act, the Electricity Act, and the Coal Bearing Areas (Acquisition and Development), among others. The list also includes a Bill to amend the Insolvency & Bankruptcy Code.
According to the Lok Sabha bulletin, one of 17 new Bills is the ‘Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021.’
The purpose of this Bill is to enable easy and time-bound access for depositors to their hard-earned money and to further instill confidence in them about the safety of their money. “The objective is to enable access by depositors to their savings through deposit insurance in a time-bound manner in case there is suspension of banking business of the insured bank under various provisions of the Banking Regulation Act, 1949,” said the bulletin.
Finance Minister Nirmala Sitharaman had said that last year the government had approved an increase in the Deposit Insurance cover from ₹1 lakh to ₹5 lakh for bank customers.
Access to deposits
She also said that amendments to the DICGC Act aims to streamline the provisions so that if a bank is temporarily unable to fulfil its obligations, the depositors of such a bank can get easy and time-bound access to their deposits to the extent of the deposit insurance cover.
Another important legislature is the Coal Bearing Areas (Acquisition and Development) Amendment Bill, 2021. It has three objectives – make provisions for leasing of land and coal mining rights vested under the CBA Act to any company (including private sector company), which has become a successful bidder in the auction of coal blocks conducted under the MMDR Act or the CMSP Act; land acquired under the Act shall be utilised for coal mining operations and allied or ancillary activities as may be prescribed by Central government; and to make provisions for acquisition of lignite bearing areas under the CBA Act.
Amendment in Limited Liability Partnership Act, 2008 aims to decriminalise 12 compoundable offences, which deal with procedural and technical violations; omission of two provisions is also proposed.
A Bill to amend Electricity Act will entail de-licensing of the distribution business and bring in competition.
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