 bill no 119 of   2009 the deposit insurance and credit guarantee corporation (amendment)  bill,  2009 by shrimati  sumitra mahajan,  mp a billfurther to amend the deposit insurance and credit guarantee corporation act, 1961be it enacted by parliament in the sixtieth year of the republic of india as follows:—47 of 1961amendment of section 212 in section 21 of the deposit insurance and credit guarantee corporation act, 1961, after sub-section (2), the following sub-section shall be inserted, namely:—55"(3) notwithstanding anything contained in this act or any other law for the time being in force, a depositor shall have the first claim to recover the amount due to him in respect of balance of  his deposit, and the liquidator shall not make any payment to the corporation under sub-section (2) until the claim of the depositor has been settled" statement of objects and reasonssection 21 of the deposit insurance and credit guarantee corporation act, 1961 has an overriding effect on any other law for the time being in force and the recoveries and other liquid funds available with the liquidator can be utilized by him only for the expenses incurred by him before making any payment to the corporation the very purpose of constituting the corporation would be defeated if the depositors have no guarantee of return of their deposits inspite of the insurance mechanism envisaged by the act hence the hard earned money of the depositors may not be fully returned at present, depositor's amount is insured only upto rupees one lakh it means that if a depositor has deposited more than one lakh rupees in a bank, which is ordered to be wound up for any reason, he may not get back his full deposited amount but get only one lakh rupees, under the provisions of the act even if any recovery is to be made by the corporation on behalf of the defunct bank, the depositors do not have a first claim on the money so recovered it is the corporation which has the first claim under the act as a result of this provision, depositors are stranded with their life savings goneit is, therefore, proposed to amend the act so as to enable the liquidator to settle the claims of the depositors as first claim before any payment under sub-section (2) of section 21 of the act to any other person or agency or claimant is effectedthe bill seeks to achieve the above objectnew delhi;sumitra mahajannovember 9, 2009 annexure extract from the deposit insurance and credit guarantee corporation act, 1961 (47 of 1961)     repayment of the amount to corporation21 (1) where any amount has been paid under section 17 or section 18 or any provision therefor has been made under section 20, the corporation shall furnish to the liquidator or to the insured bank or to the transferee bank, as the case may be, information as regards the amount so paid or provided for(2) on receipt of the information under sub-section (1), notwithstanding anything to the contrary contained in any other law for the time being in force,—(a) the liquidator shall, within such time and in such manner as may be prescribed, repay to the corporation out of the amount, if any, payable by him in respect of any deposit such sum or sums as make up the amount paid or provided for by the corporation in respect of that deposit;(b) the insured bank or, as the case may be, the transferee bank shall, within such time and in such manner as may be prescribed, repay to the corporation out of the amount, if any, to be paid or credited in respect of any deposit after the date of the coming into force of the scheme referred to in section 18, such sum or sums as make up the amount paid or provided for by the corporation in respect of that deposit|     |     |     |     |     |    ||------|------|------|------|------|-----|———— a billfurther to amend the deposit insurance and credit guarantee corporation act, 1961————(shrimati sumitra mahajan, mp)gmgipmrnd—5119ls(s5)—08-12-2009