The Deposit Insurance coverage and Credit score Assure Company (DICGC) might be making funds to the eligible depositors of 17 cooperative banks, together with eight from Maharashtra, in October.
The Reserve Financial institution of India (RBI) had imposed a number of restrictions, together with on withdrawals, by depositors of those 17 banks in July in view of their deteriorating monetary positions.
DICGC, a wholly-owned subsidiary of the RBI, offers an insurance coverage cowl of as much as Rs 5 lakh on financial institution deposits.
Of the 17 cooperative banks, eight are in Maharashtra, 4 in Uttar Pradesh, two in Karnataka, and one every in New Delhi, Andhra Pradesh and West Bengal.
The cooperative banks from Maharashtra are: Sahebrao Deshmukh Co-operative Financial institution, Sangli Sahakari Financial institution, Raigad Sahakari Financial institution, Nashik Zilla Girna Sahakari Financial institution, Saibaba Janata Sahakari Financial institution,
Anjangaon Surji Nagari Sahakari Financial institution, Jaiprakash Narayan Nagari Sahakari Financial institution, and The Karmala City Co-op Financial institution.
As per the DICGC, the banks from Uttar Pradesh whose eligible depositors might be paid in October are: Lucknow City Co-op Financial institution, City Co-operative Financial institution (Sitapur), Nationwide City Co-op Financial institution (Bahraich), and United India Co-op Financial institution (Nagina).
The banks in Karnataka are: Sri Mallikarjuna Pattana Sahakari Financial institution Niyamita (Maski) and Shri Sharada Mahila Co-operative Financial institution (Tumkur).
Eligible depositors of Ramgarhia Co-operative Financial institution (New Delhi), Suri Buddies Union Co-op Financial institution (Birbhum, Suri, West Bengal), and Durga Co-op City Financial institution (Vijayawada, Andhra Pradesh) too might be paid by the DICGC in October.
The DICGC stated the eligible depositors ought to assist their claims by legitimate doc/s of identification and written consent to obtain the quantity mendacity in credit score of their deposit accounts topic to a most of Rs 5 lakh, together with alternate checking account particulars into which the stated quantity might be credited.
Depositors might be paid by credit score to the alternate checking account specified by depositors, or on their consent, to their Aadhaar linked checking account, it stated.
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.
The entity has been extending insurance coverage cowl to depositors with the target of sustaining the boldness of small depositors within the banking system of the nation and selling monetary stability.
The Deposit Insurance coverage and Credit score Assure Company (Modification) Act, handed by Parliament in 2021, made vital modifications within the panorama of deposit insurance coverage in India.
The Company 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 another association underneath a scheme, and merger or acquisition by one other financial institution.