The Deposit Insurance and Credit Guarantee Corporation DICGC will pay the eligible depositors of Shankarrao Pujari Nutan Sahakari Bank, Ichalkaranji and Harihareshwar Sahakari Bank, Wai next month.
DICGC, a wholly owned subsidiary of the RBI, provides an insurance cover of up to 5 lakh on bank deposits.
Depositors of the two Maharashtra-based banks will get the amount credited to their alternate bank account specified by them, or their consent, to their Aadhaar-linked bank accounts.
The payment will be made on August 10, and on August 28 for the eligible depositors of Shankarrao Pujari Nutan Sahakari Bank, according to a DICGC circular.
The RBI imposed several restrictions on depositors, including on withdrawals by depositors, in May due to their deteriorating financial positions.
The RBI said that 99.84 per cent of the depositors are fully covered by the DICGC insurance scheme, which has imposed several restrictions on Shankarrao Pujari Nutan Sahakari Bank.
The RBI said that 99.59 per cent of the DICGC insurance scheme is fully covered by the bank's case of Harihareshwar Sahakari Bank.
Deposit insurance provided by the DICGC covers all commercial banks, including local area and regional rural banks as well as co-operative banks in all states and UTs.
The limit of deposit insurance at Rs 5 lakh fully protected 256.7 crore deposit accounts had 97.9 per cent of total In value, and the insured deposits of Rs 81 lakh crore were 49 per cent of the total assessable deposits at the end of March 2022.
DICGC settled aggregate claims of 8,516. 6 crore were under different channels during the 2021 -- 22 year period.
The aim of the expansion of insurance cover to depositors is to promote financial stability and maintain the confidence of small depositors in the banking system of the country.
The amendment of the Deposit Insurance and Credit Guarantee Corporation Act, passed by Parliament in 2021, made significant changes to the landscape of deposit insurance in India.
The Corporation is responsible for paying the insured deposit amount to depositors of an insured bank, as per the Act. Such liability may arise when an insured bank is liquidated, reconvenes, or any other arrangement under a scheme, or merger or acquisition by another bank.