Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay eligible depositors Shankarrao Pujari Nutan Sahakari Bank, Ichalkaranji, and Harihareshwar Sahakari Bank, in Wai next month. DICGC, a fully owned RBI company, offers up to Rs 5 lakh insurance on bank deposits. Deposits of two Maharashtra banks will receive the amount deposited into another bank account stated by them, or with their consent, in their bank accounts linked to Aadhaar.
Eligible depositors of Shankarrao Pujari Nutan Sahakari Bank will receive payment on August 10, and those of Harihareshwar Sahakari Bank on August 28, according to a DICGC circular. The Reserve Bank of India (RBI) has imposed a number of restrictions, including the withdrawal of depositors, in the two banks in May due to the collapse of their financial positions. While imposing a number of restrictions on Shankarrao Pujari Nutan Sahakari Bank, the RBI had stated that 99.84 per cent of investors were fully covered by the DICGC insurance scheme. In the case of HarihareshwarSahakari Bank, 99.59 percent are fully covered by the DICGC insurance scheme, the RBI said.
Deposit insurance extended by DICGC covers all commercial banks, including local and regional bank banks and federal banks in all provinces and UTs.At the end of March 2022, the deposit insurance limit at Rs 5 lakh fully secured 256.7 crore deposit accounts (97.9 percent of the total). In terms of value, the insured deposit of Rs 81 lakh crore made up 49 percent of the total deposit amount. DICGC resolved joint claims of Rs 8,516.6 crore under various channels during 2021-22.
The company has been extending insurance to investors in order to maintain the confidence of small investors in the national banking system and to promote financial stability. The Deposit and Credit Insurance Act (Amendment) Act, passed by Parliament in 2021, has made significant changes in the state of deposit insurance in India. Under the Act, the Association is obliged to pay the insurance deposit amount to the insurers of the insured bank. Such a liability may arise when an insured bank is sold, restructured or for any other plan under the scheme, and consolidated or acquired by another bank.
