There is good news for bank depositors whose funds are stuck in some banks. The DICGC (Amendment) Act 2021, which was notified in the Indian Gazette on August 27, 2021, came into effect with effect from September 1, 2021 for banks insured under the DICGC Act 1961 .
Accordingly, DICGC will pay depositors of banks insured under All Inclusive Directions (AID) (with deposit withdrawal restrictions) an amount equal to the amount of outstanding deposits (up to a maximum amount of only Rs 5 lakh) within a maximum period of 90 days to pay.
If you are one of these depositors, you must send a copy of the form indicating that you are ready to withdraw the amount of the insured deposit. It should be noted that only those depositors who have declared their disposition to the insured bank (according to the format) will be paid in accordance with article 18 A of the law. Depositors can contact the listed banks and submit a statement of availability and, if necessary, update other bank documents / information so that the bank can add their claims to the list by October 15, 2021.
Banks received the instructions necessary to submit claims within 45 days after receipt of the depositors’ consent to use the deposit guarantee.
The DICGC will verify and settle claims if they are presented by the banks in the previous list within the next 45 days (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.