There is news of relief for the account holders of the co-operative banks. If your hard earned money is stuck in such banks then this is your best chance to withdraw it. Reserve Bank of India’s subsidiary DICGC has asked about two dozen stressed co-operative banks, including PMC Bank, under a new law to prepare a list of account holders who are eligible to get Rs 5 lakh within 90 days. These include a total of 21 banks.
There are such banks in seven states including Uttar Pradesh
About 50 per cent of the cooperative banks from which the DICGC has sought the list for making payments to account holders are in Maharashtra. Of these 21 banks, 11 are from Maharashtra, five from Karnataka, while Uttar Pradesh, Madhya Pradesh, Punjab, Kerala and Rajasthan There is one bank each.
Account holders will get Rs 5 lakh within 90 days
Parliament last month passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, which aims to ensure that account holders get Rs 5 lakh within 90 days of the imposition of moratorium on banks by the RBI. The Deposit Insurance and Credit Guarantee Corporation (DICGC) said in a statement, “These (21) banks will submit the claim list by October 15, 2021 and the last updated (second) list (with principal and interest) by November 29, 2021. Will update so that DICGC can settle the claim.
About two dozen cooperative banks submerged
Apart from this, the DICGC has also asked the banks to give consent letter to the account holders to access funds up to Rs 5 lakh within 90 days as per the amended law. It is noteworthy that about two dozen cooperative banks across the country, including Maharashtra’s Punjab and Maharashtra Co-operative Bank (PMC), have submerged. The deposits and capital of lakhs of customers are stuck in these. In view of this, in order to give relief to the account holders, the government had to amend the Credit Guarantee Corporation Act, after which the guarantee of deposit amount was increased to five lakh rupees.
What is Guarantee on Deposit
The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of the Reserve Bank of India. It gives a guarantee from the Reserve Bank against the amount deposited in the banks. That is, if the bank sinks in any situation, then the customers will get a minimum of five lakh rupees. Earlier it used to take many years, but under the new law, customers have to pay within 90 days.
Do not keep the entire amount in one bank
The deposit insurance and credit guarantee corporation gives a guarantee on deposits in banks, the maximum limit is also five lakh rupees. That is, if you have deposited more than five lakhs in the bank and if the bank sinks then you will get only five lakh rupees. This amount is included in your savings account, FD, current account and all other deposits in the bank. In such a situation, experts say that in case of excess amount, it is wise to keep it in different banks.
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