DICGC to pay depositors of 21 banks

Deposit Insurance and Credit Guarantee Corporation (DICGC) has introduced that it’ll pay as much as Rs 5 lakh to depositors of 21 co-operative banks, together with scam-hit Punjab and Maharashtra Co-operative Bank, in the direction of settlement of deposit insurance coverage declare.
When the RBI sacked the board of PMC Bank — with deposits of Rs 10,727 crore — in 2019, it initially slapped a deposit withdrawal restriction of Rs 1,000 per account which was later elevated to Rs 50,000. About 78 per cent of the depositors have since been allowed to withdraw their deposits throughout the withdrawal restrict of Rs 50,000. While this restrict was additional enhanced to Rs 1 lakh in June final 12 months, many depositors who’ve larger quantities parked within the financial institution are nonetheless not capable of get their a reimbursement.
The DICGC checklist additionally contains Kapol Co-operative Bank and Rupee Co-operative Bank. Out of the 21 banks, 11 banks are based mostly in Maharashtra. Depositors of People’s Co-Operative Bank, Kanpur, Hindu Co-Op. Bank, Pathankot and Deccan Urban Co-Operative Bank of Karnataka may even stand up to Rs 5 lakh. The verification and settlement of the claims on submission by the banks within the checklist ought to be performed throughout the subsequent 45 days by DICGC.