You toiled hard, you sweat and bled you earned money. And like any other rational citizen of the country, you deposited it in the bank. But what if the bank you entrusted your money with, mismanages it and you can lose your money forever, right? Not exactly. To avoid such kinds of tragedies, we have a messiah in the house. That messiah is known as DICGC i.e. Deposit Insurance and Credit Guarantee Corporation. It is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.
Depositors of these 21 banks get some relief
According to a statement released by Deposit Insurance and Credit Guarantee Corporation (DICGC), account holders of enlisted 2 banks will likely get up to Rs 5 lakh. It should be noted that statement is only about the banks whose operations have been shut.
“Accordingly, DICGC shall pay the depositors of the insured banks (as per list) placed under AID (with restrictions on withdrawal of deposits), an amount equivalent to the deposits outstanding (up to a maximum of Rupees Five Lakh only) within a period not exceeding 90 days,” the statement read.
The bank which had made the headlines in recent times, Punjab and Maharashtra Co-operative Bank Limited (PMC) is also included in the list of 21 banks. Check the list of banks here:
Timeline and Procedure to be followed
According to DICGC, claims shall be settled in terms of Section 18A of the Act, ibid, and the claim settlement procedure of the Corporation. It has issued necessary instructions to these banks to submit the claims within 45 days after obtaining the willingness of depositors to claim deposit insurance.
Also, the verification and settlement of the claims on submission by the banks in the above list shall be done within the next 45 days(November 29, 2021).
At first, banks will have to submit a claim list by October 15, 2021, and update the position as on November 29, 2021 (with principal and interest), in a final updated (second) list. This will enable DICGC to settle the claim and discharge its insurance liability in full as per norms.
It should be noted that only those depositors who have given willingness to the insured bank will be paid as per Section 18 A of the Act, ibid. hence it is advised that the depositors may contact the enlisted banks and submit the declaration of willingness and also update any other documents/information if needed by the bank.
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