Account holders of these 21 banks to get up to Rs 5 lakh, DICGC releases list

Deposit Insurance and Credit Guarantee Corporation (DICGC) has released a list of 21 banks whose account holders will likely get up to Rs 5 lakh according to a statement released by it. The operations of these banks have been shut.

The functions of the DICGC are governed by the provisions of 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the said Act.

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"The DICGC (Amendment) Act, 2021 (30 of 2021), notified in the Gazette of India on August 27, 2021 vide Notification F. No. 8/3/2019-BO.II of that date, has been deemed to come into force with effect from September 1, 2021 for banks insured under DICGC Act, 1961," DICGC said in a statement.

"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," it added.

The name of Punjab and Maharashtra Co-operative Bank Limited (PMC) is also included in the list of 21 banks. Check the list of banks here:

Claims shall be settled in terms of Section 18A of the Act ibid and the claim settlement procedure of the Corporation. 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.

As per the information 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).

These 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, to enable DICGC settle the claim and discharge its insurance liability in full as per norms.

Unpaid (updated willingness list) / difference in amount of deposits up to eligible amount (as per final updated list submitted by November 29, 2021) will be paid within 30 days of receipt that is by December 29, 2021.

The claim form will be available in the bank, in which the account number, branch and amount will have to be filled. Details like mobile number and e-mail will also have to be given in the claim form.

It can 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. 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, 2021, DICGC said.

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