DICGC has said that it will make payments to the depositors of 17 cooperative banks. It includes 8 cooperative banks of Maharashtra. Depositors will get the money in October. This was announced by DICGC (The Deposit Insurance and Credit Guarantee Corporation) on August 1. How much money will the depositors get, why did the depositors need this payment, which banks come under the purview of DICGC? Let us try to know the answers to these questions.
How much money willthe depositors get?
DICGC is a subsidiary of RBI. It offers insurance cover on bank deposits up to Rs 5 lakh. It has said that the depositors who fulfill the conditions will have to give their consent in writing along with the necessary documents to get the payment. After this, the money lying in their account will be paid to them.
The maximum payment will be up to Rs 5 lakh. Depositors will also have to provide the details of the bank account in which they want to receive the money.
Why did the depositors need to make the payment?
RBI has banned the withdrawal of money from the bank accounts of the customers of these 17 cooperative banks. He banned it in July. The central bank had given this order in view of the deteriorating economic condition of these cooperative banks.
Which banks’ depositors are covered under DICGC?
All commercial banks, branches of foreign banks in India, depositors of local area banks and regional rural banks are covered under DICGC. DICGC has already returned money to the depositors of several cooperative banks. This time out of 17 cooperative banks, 8 are from Maharashtra, four from Uttar Pradesh, 2 from Karnataka and 1 each from Delhi, Andhra Pradesh andWest Bengal.
What do depositors have to say?
Members of the Bank Depositors Protection and Welfare Society (BDPWS) say that this payment of DICGC will not bring much relief to the depositors. BDPWS secretary Vishwas Utagi said that depositors are being cheated as they are not getting their full money. Apart from this, no effort is being made to save the banks from drowning.
Many depositors say that many such customers will have to bear the loss, whose bank accounts have more than Rs 5 lakh deposited. Utagi said, “DICGC charges a premium of 12 paise per Rs 100 deposit from every bank. But, instead of 100 per cent deposit amount, only Rs 5 lakh is returned. The question is what will happen to those whose bank account is in the balance. There are deposits above Rs 5 lakh.”