Increase DICGC Limit to Rs 6 lakhs to adhere to Budget wef 1-4-19 on limit of TDS on interest 40,000

In this year's Budget, the limit for deduction of TDS on Interest u/s 194A has been increased to Rs 40,000 from Rs 10,000 earlier (prevalent for more than a decade). Now at a current interest rate of 7.00 %, a person has to invest minimum Rs 5,70,000 to earn Rs 40,000 per annum to avail maximum tax benefit. To boost investor confidence, the DICGC limit should be increased to Rs 6 lakhs to cover the principal and interest. Each depositor in a bank is insured for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation /cancellation of bank's licence or the date on which the scheme of amalgamation /merger /reconstruction comes into force.The DICGC Insurance amount is presently upto a maximum of Rs.1,00,000 (Rupees One Lakh) only per depositor.

Cost of living has increased considerably over the years. As interest rates have plummeted sharply over the last 3 years, the common man has to invest more in Bank fixed deposits (FD's) to earn the targeted fixed income to meet his daily expenses. Consequently, the investment amount in Bank FD's has increased considerably over the years. There is an open risk for the depositor as the insurance amount is Rs 100000 only per depositor. This amount needs to be augmented to Rs 600000 per depositor on priority as this will instill confidence in the common man that his hard earned money is safe in the case of an unfortunate event of liquidation of the bank.

With the growing incidence of NPA's in banks and the defaults by eminent personalities, the Centre should dispel the element of fear in the minds of the common man by increasing the DICGC Insurance amount upto a maximum of Rs.6,00,000 (Rupees Six Lakhs) per depositor immediately.

This will also breathe a fresh impetus in the economy and will boost the investment climate more  

View all 24 comments Below 24 comments
Very nice proposal. Must be implemented ASAP. more  
worth to be explored. more  
Yes, needs revision in limit. more  
A good & justified proposal. more  
Good proposal more  
Post a Comment

Related Posts

    • Committes attached to govt.

      These celluloids should not get these posts. it is not clear whether the posts carry some sort of remuneration. These committees have definite role and why not advertise for memberships in committ...

      By Subramanian Venkataraman
      /
    • Pathetic MPs and bureaucrats

      25 out of 29 MPs skip key pollution meet called by Parliament's Standing Committee on Urban Development meeting. 5 Top Bureaucrats from Environment Ministry & the Municipal Corporations also bu...

      By Vinita Agrawal
      /
    • Online frauds using Facebook, Whatsapp, Instagram and other platforms: Inputs Sought

      Some of you in the online communities for Ministry of Consumer Affairs, Department of Legal Metrology and other circles have been highlighting how buying and selling is taking place via Facebook, I...

      By LocalCircles Manager
      /
    • Solutions to stop stubble burning and the deadly air in Delhi NCR and North India

      Delhi NCR and many parts of Northern India have continued to breathe the deadly air with little respite. On a few days the AQI levels even touched the very dangerous 1000+ markPoint solut...

      By LocalCircles Manager
      /
    • Improving Governance of PSUs - Addl Inputs

      Members of various circles continue to report instances of corruption at Public Sector Organisations. Below are your key inputs to improve the functioning of PSUs in India. Kindly review and if you...

      By LocalCircles Manager
      /
    • Investigation Process for Company Frauds with PSU Banks: Inputs Sought

      In multiple circles, we have received posts from members which suggest that the CBI is taking a long time in acting on complaints of frauds in excess of 100 crores filed by public sector banks. Per...

      By LocalCircles Manager
      /
    • Sensitizing Inspectors and Officers to facilitate EODB: Inputs Sought

      Many of you have been raising the issue of continued inspector raj despite some of the good governance initiatives being rolled out by the Central Government that minimise human interfaces. Below a...

      By LocalCircles Manager
      /
    • Ayodhya Verdict

      Great work by Chief Justice Ranjan Gogoi! A five-judge bench of the Supreme Court formed to resolve the Ayodhya dispute paved the way to build a temple through central government-monito...

      By Amit Mishra
      /
    • Ayodhya Verdict Tomorrow

      See attached everyone. Hope we all maintain peace and harmony.

      By Anushka Singh
      /
    • 3 years of Demonetisation: Findings and Inputs Sought

      Many of you participated in the LocalCircles survey on 3 years of demonetisation. Below, please find the link to the survey report. While increase in digital transactions are expansion of tax net a...

      By LocalCircles Manager
      /
    • Is the black money back in the economy? Inputs Sought

      Many of you may remember that this circle was the first collective community to call for demonetisation Oct 31 - Nov 8, 2016 before it was announced by the Prime Minister on Nov 8.Per the...

      By LocalCircles Manager
      /
Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)