Deposit Insurance and Credit Guarantee Corporation (DICGC) has announced that it will pay up to Rs 5 lakh to depositors of 21 co-operative banks, including Punjab and Maharashtra Co-operative Bank, for settlement of deposit insurance claim.
When the RBI superseded the board of PMC Bank with deposits of Rs 10,727 crore in 2019, it initially imposed a deposit withdrawal restriction of Rs 1,000 per account, which was later increased to Rs 50,000. Since then about 78 per cent of the depositors have been allowed to withdraw their deposits within the withdrawal limit of Rs 50,000. While this limit was further increased to Rs 1 lakh in June last year, many depositors who have huge corpus in the bank are still unable to get their money back.
The DICGC list also includes Kapol Sahakari Bank and Rupee Sahakari Bank. Out of 21 banks, 11 are located in Maharashtra. People’s Co-Operative Bank, Kanpur, Depositor of Hindu Co-op. Bank, Pathankot and Deccan Urban Co-operative Bank of Karnataka will also get up to Rs 5 lakh. The claims should be verified and settled by DICGC within the next 45 days after their listing by the banks.
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