Entire claims settled by deposit insurer was for co-op banks in FY24

Over 90% of the insured are co-op banks

The Deposit Insurance and Credit Guarantee Corporation (DICGC) settled claims worth Rs 1,432 crore in the financial year 2023-24, the entire amount being for cooperative banks, Reserve Bank of India (RBI) data showed.

 

According to DICGC’s annual report for FY24, claims settled in FY24 was Rs 1,432 crore for liquidated banks as well as for lenders which are under RBI’s all-inclusive directions (AID).

 

“The DICGC settled claims of Rs 1,432 crore during 2023-24, which pertained entirely to co-operative banks placed under liquidation/ all-inclusive directions (AID),” the Trend and Progress report of RBI noted.

 

Claims almost doubled from FY23, which was Rs 752 crore and again this was entirely pertaining to cooperative banks. The amount included Rs 59 crore provided to Unity Small Finance Bank (USFB) for making payment to the depositors of erstwhile Punjab and Maharashtra Co-operative Bank (PMCBL) following the latter’s merger with Unity which came into effect from January 25, 2022.

 

There are 1997 insured banks registered with the DICGC as on 31 March, 2024 of which 140 are commercial banks and 1,857 cooperative banks.

 

The deposit insurance fund stood at Rs 1.99 trillion as on end March 2024 while the premium collected in FY24 was Rs 23,897 crore.

 

The insurance premium rate was increased to 0.12 per cent for a deposit of Rs 100, with effect from April 1, 2020, from 0.1 per cent.

 

Insured banks pay advance insurance premium to DICGC semi-annually within two months from the start of each financial half year, based on their deposits at the end of the previous half year.

 

The premium paid by the insured banks to the corporation is required to be borne by the banks themselves and is not passed on to the depositors.