DICGC Settles Insurance Claims Of 3,06,146 Eligible Depositors Of 35 Banks

The Deposit Insurance and Credit Guarantee Corporation (DICGC) has settled deposit insurance claims of 3,06,146 eligible depositors of 35 banks under ‘All Inclusive Directions’ (AID), amounting to Rs 4,055.10 crore, said Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha.

The minister on Monday also informed that the banks liquidated after payment to depositors under Section 18A of DICGC Act, 1 are Millath Co-Op Bank, Sarjeraodada Naik SBL, Seva Vikas CBL, Babaji Date Mahila SBL, Laxmi Co-op Bank, Rupee Co-op Bank etc. 

The minister further stated the year-wise and bank-wise details (during the last ten years before the Amendment Act) of the claims settled by DICGC.

Giving more information, the minister stated that 12 banks have since gone into liquidation after the deposit insurance amount was paid to the depositors of the banks in terms of Section 18A of the DICGC Act, 1961 from 01 September 2021 to 30 November 2022.

Giving more background information, the Minister stated that the DICGC Act, 1961, as amended through the DICGC (Amendment) Act, 2021 enables depositors to get time-bound access to their deposits up to Rs 5 lakh through interim payments by DICGC within 90 days of the imposition of ‘All Inclusive Directions’ (AID) by the Reserve Bank of India (RBI) on banks. 

Banks placed under AID are required to furnish a list of depositors showing the net outstanding deposits to the credit of each depositor in the same capacity and in the same right within 45 days of the imposition of AID. 

DICGC has to settle claims within the statutory timelines of 90 days after the imposition of AID.