Depositors of PMC, 20 other stressed banks to get up to ₹5L in 90 days

Depositors of PMC, 20 other stressed banks to get up to ₹5L in 90 days

As the Deposit Insurance and Credit Guarantee Corporation (DICGC) begins the payment process, depositors of the stressed Punjab and Maharashtra Cooperative Bank (PMC) and 20 other credit cooperatives will soon be able to set a limit of up to 500,000 Get funding. Their guarantee amount is within 90 days.

These banks received the necessary instructions to submit claims within 45 days of receiving depositors’ approval for deposit insurance, says DICGC CEO V.G.’s statement. Venkata Chalapati.

The relocation will benefit 20 heavily burdened banks, in addition to Maharashtra-based PMC. Of the 20, ten are also in Maharashtra, five in Karnataka, one each in Kerala, Madhya Pradesh, Uttar Pradesh, Punjab and Rajasthan.

Depositors to get up to Rs 5 lakh within 90 days if bank under moratorium |  Business Standard News

Thousands of depositor money became unavailable after the Reserve Bank of India (RBI) imposed a moratorium on PMC on September 23, 2019, after the bank had detected stress.

Apply to PMC bank to Adoor CoOperative Urban Bank, Bidar Mahila Urban CoOp. Bank, Miejski Bank Spadzielczy, Spdzielnia Hinduka. Bank, Kapol Cooperative Bank, Maratha Sahakari Bank, Millath Cooperative Bank, Needs of Life Spółdzielczy Bank, Padmashree Dr Vithal Rao Vikhe Patil, People’s Cooperative Bank, Rupee Cooperative Bank, Shri Anand Coop. Bank, Sikar Urban CoOp. Bank, Sri Gururaghvendra Sahakara Bank, The Mudhol CoOperative Bank, Mantha Urban Cooperative Bank, Sarjeraodada Naik Shirala Sahakari Bank, Independence Cooperative Bank, Deccan Urban CoOperative Bank I Garha Cooperative Bank.

The 90-day duration to problem the insured quantity is powerful from September 1, 2021, the announcement said, giving an in-depth timeline. According to it, the verification and agreement of the claims on submission via way of means of the banks withinside the aforesaid listing will be accomplished withinside the subsequent forty-five days via way of means of DICGC, that’s November 29, 2021.

Depositors of PMC, 20 other stressed banks to get up to ₹5L in 90 days -  Hindustan Times

These banks must submit a list of claims by October 15, 2021, and update the item as of November 29, 2021 (with principal and interest) in the final updated (second) list to allow the DICGC to satisfy the claim and take out liability insurance in full in accordance with the standards. Unpaid (update of the readiness list) / difference in the number of contributions to the allowable amount (as per the final updated list submitted by November 29, 2021) will be paid within 30 days of receipt (i.e. December 29, 2021), he said.

Currently, the DIGCC guarantees that each depositor will pay no more than 5 lakhs (including principal and interest) in the event of a bank liquidation, even if the account holder may have several lakhs in the account. However, until recently, there was no set date for completing this process. In an amendment to the DICGC law last month, the government ordered the insurer to complete formalities as soon as possible and pay the sum insured to depositors of distressed banks within 90 days.

The amended provision applies to all savings bank deposits, permanent deposits, current accounts and regular deposits – and applies to all commercial or cooperative banks, regardless of whether they are private enterprises or public sector financial institutions. Local banks, regional village banks, cooperative banks, small financial banks and payment banks are subject to the legal framework for loan guarantees, according to an official from the Ministry of Finance.

Withdrawal limit of Rs 1 lakh on PMC bank can't be increased due to lack of  liquidity: RBI tells Delhi High Court - The Financial Express

In her February 1 budget speech, Finance Minister Nirmala Sitharaman said: I will amend the 1961 DICGC … to simplify the rules so that in the event of a bank’s temporary inability to meet its obligations, its depositors can have a simple and time-limited access to your deposits within the limits of your deposit insurance coverage. This will help depositors of banks who are currently under stress.

 

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