DIGC to pay Rs 17 crore of depositors money

Announcement by the Depositors Insurance Credit Gurantee Corporation (DIGC) to allocate Rs 17 crore towards repayment of deposits of now defunct Mitra Mandal Co-Operative Bank has given huge relief to the bank's customer, who are waiting for their money for last two years.

As Reserve Bank of India found many irregulatries in the functioning of the Mitra Mandal bank, it revoked its licence and ever since bank depositors were waiting for their money.

There are about 23,000 bank's customers who had deposits of less than Rs 1 lakh and total amount of such deposit is Rs 19.11 crores. which has been locked as bank went into liqudation.

However, as DIGC found irregularties in some of the accounts, it decided to settle the depositors claim only up to Rs 17 crore