DICGC will be paying the depositors of the insured banks within a period not exceeding 90 days.
There is good news for bank depositors who have their funds stuck up in some of the banks. The DICGC (Amendment) Act, 2021, which has been notified in the Gazette of India on August 27, 2021, has come into force with effect from September 1, 2021, for banks insured under DICGC Act, 1961.
Accordingly, DICGC will be paying the depositors of the insured banks under All Inclusive Directions (AID) (with restrictions on withdrawal of deposits), an amount equivalent to the deposits outstanding (up to a maximum of Rs 5 lakh only) within a period not exceeding 90 days.
If you are one of such depositors, you need to submit a copy of the format in which willingness to claim the insured deposit amount has to be conveyed. It may be noted that only those depositors who have given willingness (as per format) to the insured bank will be paid as per Section 18 A of the Act. Depositors may contact the said banks and submit the declaration of willingness and also update any other documents/information, if needed by the bank, so that their claims can be included by the bank in the list by October 15, 2021.
Necessary instructions have been issued to the banks to submit the claims within 45 days after obtaining the willingness of depositors to claim deposit insurance.
The verification and settlement of the claims on submission by the banks in the aforesaid list shall be done within the next 45 days by DICGC (November 29, 2021).
Banks placed under AID
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
The banks have been asked to submit a claim list by October 15, 2021 and update the position as on November 29, 2021 (with principal and interest). Any unpaid deposits up to eligible amount (as per final updated list submitted by November 29, 2021) will be paid within 30 days of receipt (i.e., by December 29, 2021).
In the case of a bank failure, bank deposits are going to be insured up to Rs 5 lakh. Earlier, the limit was up to Rs 1 lakh set in 1993. The increase in the limit of deposit insurance is as per the Budget 2020 proposals. The deposit insurance of Rs 5 lakh is applicable on per depositor per bank basis and, therefore, is the aggregate of the amount across branches of the same bank. The deposits spread across different banks will, therefore, be insured, separately.