Depositors of 21 closed co-operative banks will get insurance up to Rs 5 lakh; Includes 10 banks in Maharashtra

There is big news in the banking sector. Depositors of 21 failed co-operative banks, including PMC Bank, will now be provided deposit insurance cover of up to Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Kapol Co-operative Bank, Rupee Co-operative Bank and many other co-operative banks have been asked to submit 45 days deposit claims.

The DICGC Research Act, 2021 came into force on 1 September 2021 for the insured banks under the DICGC Act, 1961. Accordingly, DICGC will repay up to Rs 5 lakh to the insured bank depositors within 90 days. The DICGC said in a statement that the banks have been instructed to submit the applications received from the depositors for deposit insurance claims within 45 days. The list provided by the banks will be verified and settled by DICGC within the next 45 days.

Banks have been asked to submit a new claim by October 15 and update the status by November 29, 2021 with principal and interest. Advising depositors, the DICGC said that depositors can contact their banks and file claims. The bank can also update other required documents / information if required. So that their claims will be processed by the bank by October 15.

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

This includes banks.

Adoor Sahakari Nagari Bank (Kerala), Bidar Mahila Urban Coop. Bank (Karnataka), City Cooperative Bank (Maharashtra), Hindu Cooperative Bank, Pathankot (Punjab), Kapol Cooperative Bank (Maharashtra), Maratha Cooperative Bank (Maharashtra), Millat Cooperative Bank (Karnataka), Needs of Life Cooperative Bank (Maharashtra) , Padma Shri Dr. Vitthalrao Vikhe Patil (Maharashtra), People’s Cooperative Bank, Kanpur (Uttar Pradesh), PMC Bank (Maharashtra), Rupe Sahakari Bank (Maharashtra), Shri Anand Sahakari. Bank, Pune (Maharashtra), Sikar Urban Coop. Bank (Rajasthan), Shri Gururaghvendra Sahakari Bank (Karnataka), The Mudhol Sahakari Bank (Karnataka), Mantha Nagari Sahakari Bank (Karnataka), Sarjeradada Naik Shirala Sahakari Bank (Maharashtra), Independence Co-operative Bank, Nashik (Maharashtra), Deccan Urban Cooperative Bank, Vijaypur (Karnataka), Gadha Sahakari Bank, Guna (Madhya Pradesh).


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