DICGC: Payment process on; depositors of ailing UCBs to benefit

In a press release DICGC has invited applications in a prescribed format from the depositors of several ailing urban cooperative banks which include PMC Bank, Rupee Bank, Kapol Bank and many others.

The release clarifies “The DICGC (Amendment) Act, 2021 (30 of 2021), notified in the Gazette of India on August 27, 2021 vide Notification F. No. 8/3/2019-BO.II of that date, has been deemed to come into force with effect from September 1, 2021 for banks insured under DICGC Act, 1961.”

“Accordingly, DICGC shall pay the depositors of the insured banks (as per list) placed under AID (with restrictions on withdrawal of deposits), an amount equivalent to the deposits outstanding (up to a maximum of Rupees Five Lakh only) within a period not exceeding 90 days”, it says.

The claims shall be settled in terms of Section 18A of the Act ibid and the claim settlement procedure of the Corporation. Necessary instructions have been issued to these banks to submit the claims within 45 days after obtaining the willingness of depositors to claim deposit insurance, says DICGC guidelines.

“The verification and settlement of the claims on submission by the banks in the aforesaid list shall be done within the next 45 days by DICGC (November 29, 2021). These banks shall submit a claim list by October 15, 2021 and update the position as on November 29, 2021 (with principal and interest), in a final updated (second) list, to enable DICGC settle the claim and discharge its insurance liability in full as per norms”, underlined the release.

Unpaid (updated willingness list) / difference in amount of deposits up to eligible amount (as per final updated list submitted by November 29, 2021) will be paid within 30 days of receipt (i.e., by December 29, 2021), it says.

“A copy of the format in which willingness to claim insured deposit amount has to be conveyed by the depositor has been notified. It may be noted that only those depositors who have given willingness (as per format) to the insured bank will be paid”, DICGC release states.

It is advised that the depositors may contact the said banks and submit the declaration of willingness and also update any other documents/information, if needed by the bank, so that their claims can be included by the bank in the list by October 15, 2021, it clarifies.

DICGC has also listed the banks as following

1 Adoor Co-Operative Urban Bank Ltd Kerala

2 Bidar Mahila Urban Co-Op. Bank Ltd Karnataka

3 City Co-Operative Bank Ltd Maharashtra

4 Hindu Co-Op. Bank Ltd, Pathankot Punjab

5 Kapol Co-Operative Bank Ltd. Maharashtra

6 Maratha Sahakari Bank Ltd., Mumbai. Maharashtra

7 Millath Co-Operative Bank Ltd Karnataka

8 Needs Of Life Co-Operative Bank Ltd. Maharashtra

9 Padmashree Dr. Vithal Rao Vikhe Patil Maharashtra

10 People’s Co-Operative Bank Ltd., Kanpur Uttar Pradesh

11 Punjab & Maharashtra Co-Op. Bank Ltd. Maharashtra

12 Rupee Co-Operative Bank Ltd. Maharashtra

13 Shri Anand Coop. Bank Ltd., Pune Maharashtra

14 Sikar Urban Co-Op. Bank Ltd. Rajasthan

15 Sri Gururaghvendra Sahakara Bank Niyamitha Karnataka

16 The Mudhol Co-Operative Bank Ltd Karnataka

17 Mantha Urban Cooperative Bank Ltd. Maharashtra

18 Sarjeraodada Naik Shirala Sahakari Bank Ltd. Maharashtra

19 Independence Cooperative Bank Ltd, Nashik Maharashtra

20 Deccan Urban Co-Operative Bank Ltd., Vijayapur Karnataka

21 Garha Co-Operative Bank Ltd., Guna Madhya Pradesh

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