The Deposit Insurance and Credit Guarantee Corporation (DICGC) can pay the eligible depositors of Shankarrao Pujari Nutan Sahakari Bank, Ichalkaranji, and Harihareshwar Sahakari Bank, Wai subsequent month. DICGC, a wholly-owned subsidiary of the RBI, gives an insurance coverage cowl of as much as Rs 5 lakh on financial institution deposits.
Depositors of the 2 Maharashtra-based banks will get the quantity credited to the alternate checking account specified by them, or on their consent, to their Aadhaar-linked financial institution accounts. Eligible depositors of Shankarrao Pujari Nutan Sahakari Bank will get the fee on August 10, and people of Harihareshwar Sahakari Bank on August 28, in keeping with a DICGC round.
The Reserve Bank of India (RBI) had imposed a number of restrictions, together with on withdrawals by depositors, on these two banks in May within the wake of their deteriorating monetary positions. While imposing a number of restrictions on Shankarrao Pujari Nutan Sahakari Bank, the RBI had mentioned that 99.84 per cent of the depositors are totally lined by the DICGC insurance coverage scheme.
In case of Harihareshwar Sahakari Bank, 99.59 per cent are totally lined by the DICGC insurance coverage scheme, the RBI had mentioned. Deposit insurance coverage prolonged by the DICGC covers all industrial banks, together with native space banks and regional rural banks in addition to co-operative banks in all of the states and UTs.
As at end-March 2022, the restrict of deposit insurance coverage at Rs 5 lakh totally protected 256.7 crore deposit accounts (97.9 per cent of whole). In worth phrases, the insured deposits of Rs 81 lakh crore fashioned 49 per cent of the entire assessable deposits.
DICGC settled mixture claims of Rs 8,516.6 crore beneath completely different channels throughout 2021-22.
The entity has been extending insurance coverage cowl to depositors with the target of sustaining the arrogance of small depositors within the banking system of the nation and selling monetary stability. The Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, handed by Parliament in 2021, made important adjustments within the panorama of deposit insurance coverage in India.
Under the Act, the Corporation is liable to pay the insured deposit quantity to depositors of an insured financial institution. Such legal responsibility might come up when an insured financial institution undergoes liquidation, reconstruction or every other association beneath a scheme, and merger or acquisition by one other financial institution.
Source: www.financialexpress.com”