The Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay depositors of 21 troubled cooperative banks, including Punjab & Maharashtra Co-Operative Bank (PMC Bank), up to Rs 5 lakh within 90 days .
The Reserve Bank of India (RBI) had imposed restrictions on the withdrawal of deposits from these banks. Of the 21 banks, 11 are from Maharashtra, five from Karnataka and one from Uttar Pradesh, Kerala, Rajasthan, Madhya Pradesh and Punjab.
The DICGC in a statement said that only depositors who have submitted their will to insured banks will get the money. The deadline for submitting the declaration of will and updating any other document / information to help banks include their claims in the list is October 15th.
Banks are required to submit a list of receivables by October 15 and update the position to November 29 (with principal and interest). This will allow the DICGC to settle claims and fully discharge its insurance liability in accordance with standards. The DICGC will verify and settle claims within 45 days (November 29).
This development comes after Parliament passed the Deposit Insurance and Credit Guarantee Company (Amendment) Bill of 2021, ensuring that account holders get up to Rs 5 lakh within 90 days. the imposition by the RBI of a moratorium on banks. The government notified September 1 of the date on which the provisions of the Act would come into force. The mandatory 90 days from the notified date end on November 30.
The number of fully protected accounts, 2.48 billion, at the end of March represented 98.1% of the total number of accounts (253 billion), compared to the international benchmark of 80%.
Total insured deposits stood at Rs 76.21 trillion, which represented 50.9% of taxable deposits of Rs 149.7 trillion at the end of March. The international benchmark is 20 to 30 percent.
The number of registered insured banks stood at 2,058 as of March 31, 2021 including 139 commercial banks [including 6 payment banks (PBs), 10 small finance banks (SFBs), 43 regional rural banks (RRBs), two local area banks (LABs)] and 1,919 cooperative banks.