DICGC to pay upto Rs 5 lakh to depositors of 21 insured co-op banks

The banks include include Punjab & Maharashtra Co-Op Bank (PBC Bank) and City Co-operative Bank

Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay the depositors of 21 insured cooperative banks, including Punjab & Maharashtra Co-Op Bank (PBC Bank) and City Co-operative Bank, upto Rs 5 lakh in 90 days.

These banks have been placed under direction with restrictions on withdrawal of deposits. Out of the 21 banks, 11 are from Maharashtra, 5 from Karnataka and one each from Uttran Pradesh, Kerala, Rajasthan, Madhya Pradesh and Punjab.

In June, the Reserve Bank of India gave “in-principle” approval to Centrum Financial Services Ltd (CFSL) to set up a small finance bank, which will take over the beleaguered Punjab and Maharashtra Cooperative Bank (PMC Bank).

DICGC in a statement said only those depositors who have given willingness to the insured banks would get money. The depositors should submit the declaration of willingness and also update any other documents/information to help banks to include their claims in list by October 15, 2021.

These banks shall submit a claim list by October 15, 2021 and update the position as on November 29, 2021 (with principal and interest). This will enable DICGC to settle the claim and discharge its insurance liability in full as per norms. DICGC will do the verification and settlement of the claims within 45 days (November 29, 2021).