This category includes many banks which have been put on the moratorium by the RBI. In some banks, the period may be extended by 90 days as the Reserve Bank is working on a merger, arrangement or restructuring scheme of banks running into write-offs.
At present, many cooperative banks of the country are running in the Moratorium of the Reserve Bank. After the fraud in these banks, the Reserve Bank had banned. It is believed that the settlement of these banks is going to happen very soon. This is being said because the government has fixed the date of September 1, 2021, from when the depositors will get Rs 5 lakh as moratorium within the next 90 days. This means that the depositors of these banks can get their money back till November 30, 2021. The Union Finance Ministry has issued a circular in this regard on August 27, 2021.
The Ministry of Finance has said that in accordance with sub-section (2) under Section 1 of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021, the Central Government has implemented the provision of this Act on the 1st of September, 2021. With this, all the depositors will get Rs 5 lakh, whose banks have been put on the moratorium by the Reserve Bank. An amount of Rs 5 lakh will also be given to the depositors of those banks which were running on the moratorium even before the passing of the Bank Deposit Guarantee Act.
What is the account of 5 lakhs
Many banks are included in this category which have been put on moratorium by RBI. In some banks, the period may be extended by 90 days as the Reserve Bank is working on a merger, arrangement or restructuring scheme of banks running into write-offs. Nishant Singh, Partner, Induslaw, tells Economic Times, that the Reserve Bank is currently working on the restructuring scheme of bad banks, so it can ask DICGC to extend the period of giving 5 lakh rupees to customers by another 90 days. . In such a situation, it is possible that instead of 90 days, the depositors will get Rs 5 lakh in 180 days. Extending the tenure simply means that the written off banks should be merged with a bigger bank so that customers can get their deposits easier.
The banks which are currently running in the Moratorium of the Reserve Bank include the names of the Graha Co-operative Bank in Guna, Madhya Pradesh-based Deccan Urban Co-operative Bank, Vijayawada and the Independence Co-operative Bank in Nashik. Recently, the government had announced that the banks which are running in the moratorium, that is, the customers of the banks which have gone into write-off, will get Rs 5 lakh within 90 days from the start of the moratorium. The law was passed in the ongoing monsoon session in August this year.
who and how will get the money
The Finance Ministry has divided the period of 90 days into two parts of 45-45 days for this. The written off banks will collect the records of their depositors in the first 45 days and give these information to the DICGC. In the next 45 days, DICGC will process all the claims and Rs 5 lakh will be returned to the customers. The Finance Minister has already said that earlier one had to wait 8-10 years to get the money sunk under insurance. But now the same work will be completed within 90 days.
There is a provision to give 5 lakh rupees to the customers in the form of principal and interest deposited in banks. PMC Bank will get the biggest benefit of this. If seen, about 50 banks of the country have come to the Reserve Bank’s moratorium, which will be given the benefit of the deposit scheme.
