Following the Reserve Bank of India’s imposition of restrictions on three cooperative banks, Irinjalakuda Town Cooperative Bank (Kerala), Lokapavani Mahila Sahakari Bank Niyamitha (Karnataka), and Sonepeth Nagari Sahakari Bank Maryadit (Maharashtra), the Deposit Insurance and Credit Guarantee Corporation (DICGC) has stepped in to protect depositors’ interests under Section 18A of the DICGC Act, 1961.
As per the DICGC notification, eligible depositors of these banks will receive compensation of up to Rs 5 lakh per depositor, in the same capacity and right. To avail this insurance benefit, depositors are required to submit their claims along with officially valid identity documents and a written declaration expressing willingness to receive the insured amount.
The deadline for claim submission is September 13, 2025. Depositors must also provide details of an alternate bank account for the credit of compensation. Alternatively, with their consent, the amount may be credited to their Aadhaar-linked bank account.
The disbursement is scheduled for October 28, 2025, provided the banks submit the required claim lists to DICGC within the statutory 45-day period. This initiative reflects DICGC’s ongoing commitment to safeguarding the interests of depositors of banks under regulatory distress. For more details, depositors are encouraged to visit the official DICGC website: www.dicgc.org.in/public-awareness.