According to a statement made by the Deposit Insurance and Credit Guarantee Corporation (DICGC), account holders at 21 banks will likely get up to Rs 5 lakh. These banks' operations have been stopped.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) declared on September 21 that it will pay depositors of insured banks put under all-inclusive directives (AID) a sum equal to the outstanding deposits, up to a limit of Rs 5 lakh only within a period of not more than 90 days.
What exactly is DICGC?
The Reserve Bank of India's Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary (RBI). It provides deposit insurance, which acts as a safety net for bank depositors in the event that the bank fails to pay them.
Up to a ceiling of Rs. 5 lakh per account holder per bank, the agency covers all types of deposit accounts held by a bank, including savings, current, recurring, and fixed deposits. If an individual's deposit balance in a single bank exceeds Rs.5 lakh, DICGC will pay just Rs.5 lakh, including principle and interest, if the bank goes bankrupt.
A total of 21 banks, including PMC Bank, have been placed under AID, and the insured bank's depositors would receive money through the deposit insurance scheme.
The Deposit Insurance and Credit Guarantee Corporation Act, 1961 (DICGC Act) and the Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961 (DICGC General Regulations) framed by the Reserve Bank of India in the exercise of the powers conferred by sub-section (3) of Section 50 of the said Act govern the DICGC's functions.
Within the next 45 days, the DICGC will verify and satisfy the claims on the submission made by the bank.
By October 15, 2021, these banks must submit a claim list and update their status as of November 29, 2021, with principal and interest.
The DICGC stated that the unpaid discrepancy in deposit amounts up to the eligible amount will be paid within 30 days of receipt by December 29, 2021.
The DICGC Amendment Bill was passed by parliament in August, ensuring that bank account depositors get up to Rs 5 lakh from the DICGC within 90 days of the bank being placed under the RBI moratorium. The deposit insurance limit had previously been set at Rs 1 lakh.
21 Banks placed under AID
|Banks placed under AID|
|S. No., Bank Name, State|
|1 Adoor Co-Operative Urban Bank Ltd, Kerala|
|2 Bidar Mahila Urban Co-Op. Bank Ltd, Karnataka|
|3 City Co-Operative Bank Ltd, Maharashtra|
|4 Hindu Co-Op. Bank Ltd, Pathankot, Punjab|
|5 Kapol Co-Operative Bank Ltd., Maharashtra|
|6 Maratha Sahakari Bank Ltd., Mumbai., Maharashtra|
|7 Millath Co-Operative Bank Ltd, Karnataka|
|8 Needs Of Life Co-Operative Bank Ltd., Maharashtra|
|9 Padmashree Dr. Vithal Rao Vikhe Patil, Maharashtra|
|10 People's Co-Operative Bank Ltd., Kanpur Uttar Pradesh|
|11 Punjab & Maharashtra Co-Op. Bank Ltd., Maharashtra|
|12 Rupee Co-Operative Bank Ltd., Maharashtra|
|13 Shri Anand Coop. Bank Ltd., Pune Maharashtra|
|14 Sikar Urban Co-Op. Bank Ltd., Rajasthan|
|15 Sri Gururaghvendra Sahakara Bank Niyamitha, Karnataka|
|16 The Mudhol Co-Operative Bank Ltd, Karnataka|
|17 Mantha Urban Cooperative Bank Ltd., Maharashtra|
|18 Sarjeraodada Naik Shirala Sahakari Bank Ltd,. Maharashtra|
|19 Independence Cooperative Bank Ltd, Nashik, Maharashtra|
|20 Deccan Urban Co-Operative Bank Ltd., Vijayapur, Karnataka|
|21 Garha Co-Operative Bank Ltd., Guna, Madhya Pradesh|