A group representing depositors of failed co-operative banks across India has filed a Public Interest Litigation (PIL) before the Bombay High Court, challenging key provisions of the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. The petition seeks to declare Sections 16 and 21 of the Act unconstitutional for limiting deposit insurance to Rs 5 lakh and prioritizing DICGC over depositors during liquidation.
Filed on behalf of depositors from Karwar Urban Co-operative Bank (Karnataka), Sai Nagari Sahakari Bank (Maharashtra), and others, the PIL argues that the current framework unfairly penalizes innocent depositors for systemic failures caused by poor governance and regulatory negligence.
The petition highlights that while DICGC collects insurance premiums on the entire deposit base, depositors receive coverage only up to Rs 5 lakh, an amount termed “grossly inadequate” in today’s economy. It also points to delays in payout beyond the statutory 90-day period and the existence of a large DICGC surplus exceeding Rs 1.5 lakh crore.
The petitioners have sought a court direction for proportionate insurance cover, strict adherence to the 90-day payout rule, and creation of a transparent framework for utilizing DICGC’s surplus for depositors’ benefit. The matter is expected to come up for hearing shortly.
I am a Depositor from karnataka retired Public sector employee with Rs 200 as pension my mother and I had deposited Rs 10)lakh each that was our life time savings including what we got by selling my father’s property my mother expired without seeing end for this tussle I am 73 years old I fear the same will be my fate
I am a Depositor from karnataka retired Public sector employee with Rs 200 as pension my mother and I had deposited Rs 10)lakh each that was our life time savings including what we got by selling my father’s property my mother expired without seeing end for this tussle I am 73 years old I fear the same will be my fate
Ocean of insurance corpus of more than 1.5 lakh crores accumulated from insurance premiums of depositors money. But there is tight cap on insurance to the meagre limit of 5 lakhs. Not the innocent depositors’ fault but bad karma of the banking institutions where big borrowers escape never to return and medium and big depositors loose big money and rot after getting cheated by the non state banks even though they are given licence to run banks strictly based on terms and conditions which are grossly violated but never face consequences.
My thanks to pettioners for making co- operative bank more reliable and trust worthy.
RBI & DICGC should protect entire money of depositors when they take insurance on full deposit amount
It is their constitutional duty to protect inocent depositor’s life long saving in bank.
RAHUL AMAR OUR hard earned money was robbed and no one tried to solve it .This is our India Iam a victim og PMC BANK POWAI BRANCH WE need our money back any how .Thanks
I am Ranjana sahni a victim of PMC bank,I deposited all my saving in this bank now I don’t have money to eat and u have sold all my jwellery also to run my house.have some mercy to give our hard earned money back so that we can live with dignity thanks
Our FD In the name of 3 person approximately near Rs.1 Caror and today we are as like bagger Kapol bank MR. K.D.VORA Expired and he and his friends eat our hard earned money. God give him good panishment and give place in SWARG so that next time he can do this kinds of work
I myself is victim of PMC bank fraud. I am aware ,how painfull it is to loose life long saving for trusting bank managment and regulator / supervisor-RBI.
I request all authorities who govern co- bank type setup & RBI that please stop fraudulent activities in bank and allow co- operative banks to function.
Paying DICGC insurance is not solutions but running bank professionally and diligence by RBI is need of hour.
The trust on co- operative banks need to be restored
Give back our hard earned money a earnest request to RBI.We are not getting any interest on our money nor allowed to use the principal amount.Is this not a daring day light dacaoity. Is the Government not having Sympathy for Senior Citizens for having toiled their Whole life.So many innocent and gullible Public have lost their lives .Who are going to take of dependents.
Pl read take Care of