Home/ Industry / Banking/  Depositors of PMC, 20 other stressed banks to get up to 5 lakh in 90 days

NEW DELHI : Depositors of stressed Punjab and Maharashtra Co-operative (PMC) Bank and 20 other co-operative banks will soon be able to get their money with a limit up to 5 lakh per depositor as the Deposit Insurance and Credit Guarantee Corporation (DICGC) has initiated the process to pay their ensured sum within 90 days.

“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," DICGC chief general manager V.G. Venkata Chalapathy said in a statement on Wednesday.

The move will benefit 20 other stressed banks besides PMC. Ten are based in Maharashtra, five in Karnataka, and one each in Kerala, Madhya Pradesh, Uttar Pradesh, Punjab and Rajasthan. Thousands of depositors’ money became inaccessible due to the PMC Bank’s debacle, which was put under moratorium on 23 September 2019 by the Reserve Bank of India (RBI) after the stress of the bank surfaced.

The 20 other co-operative banks include Adoor Co-operative Urban Bank, Bidar Mahila Urban Co-operative Bank, City Co-operative Bank, Hindu Co-operative Bank, Kapol Co-operative Bank, Maratha Sahakari Bank, Millath Co-operative Bank, Needs of Life Co-operative Bank, Padmashree Dr. Vithal Rao Vikhe Patil, People’s Co-operative Bank, and Rupee Co-operative Bank.

The 90-day period to issue the insured amount is effective from 1 September, the statement said. Verification and settlement of claims on submission by the banks in the aforesaid list shall be done within 45 days by the DICGC.

“These banks shall submit a claim list by 15 October and update the position as on 29 November (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. Unpaid (updated willingness list)/difference in amount of deposits up to eligible amount (as per final updated list submitted by 29 November) will be paid within 30 days of receipt (i.e., by 29 December )," the statement read.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 23 Sep 2021, 01:18 AM IST
Recommended For You
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout