Personal Finance

Depositors of 21 failed cooperative banks including PMC to get deposit insurance cover


Depositors of 21 failed cooperative banks including PMC Bank will now get deposit insurance cover of upto Rs 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). Depositors of Kapol cooperative bank, Rupee cooperative bank and several other cooperative banks have been asked to submit depositor claims within 45 days.

The DICGC (Amendment) Act, 2021 came into force with effect from September 1, 2021 for banks insured under DICGC Act, 1961. As per the amendment, DICGC will pay the depositors of the insured banks, upto Rs 5 lakh within 90 days of claim submission.

“Necessary instructions have been issued to these banks to submit the claims within 45 days after obtaining the willingness of depositors to claim deposit insurance,” DICGC said in a statement.

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.

The banks have been asked to submit claims latest by October 15 and update the position as on November 29, 2021 along with principal and interest, in a final updated list, to enable DICGC settle the claim and discharge its insurance liability in full as per norms.

“It is advised that the 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,” DICGC.

The Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, was cleared last month ensuring that account holders get up to Rs 5 lakh within 90 days of the RBI imposing moratorium on the banks. Last year, the government increased the insurance cover on deposits by five times to Rs 5 lakh.



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