Stressed coop banks told to make list of claimants

DICGC directive

– The Deposit Insurance and Credit Guarantee Corporation (DICGC) has asked nearly two dozen stressed cooperative banks to prepare a list of account holders to receive Rs5 lakh within 90 days

– Last month, Parliament passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to Rs5 lakh within 90 days of the RBI imposing a moratorium on banks

Mumbai, September 22

The RBI’s subsidiary DICGC has asked nearly two dozen stressed cooperative banks, including PMC Bank, to prepare a list of account holders eligible to receive Rs 5 lakh within 90 days, as part of its mandate under a new law.

Last month, Parliament passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to Rs 5 lakh within 90 days of the RBI imposing a moratorium on banks.

Following enactment, the government has notified September 1, 2021 as the date on which the provisions of the Act would come into force. The mandated 90 days from the notified date comes to an end on November 30, 2021.

There are 21 such cooperative banks which are under the RBI’s moratorium. So, account holders of these lenders are covered under the law passed last month.

“These (21) banks shall 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,” Deposit Insurance and Credit Guarantee Corporation (DICGC) said.

DICGC has also asked the banks to circulate consent form to account holders for accessing funds up to Rs 5 lakh as per the amended law within 90 days.

“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 (i.e., by December 29, 2021),” it said.

Besides PMC Bank, depositors of Sri Guru Raghavendra Sahakara Bank, Rupee Cooperative Bank, Independence Cooperative Bank, Adoor Co-Operative Urban Bank, Bidar Mahila Urban Co-Op. Bank Ltd and Peoples Cooperative Bank will also benefit.

Out of 21 banks, 11 are from Maharashtra, while five from Karnataka, one each from Uttar Pradesh, Madhya Pradesh, Punjab, Kerala, and Rajasthan. — PTI