Home / Industry / Banking /  DICGC to pay up to 5 lakh to account holders of 21 insured banks

Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay the depositors/account holders of the 21 insured banks placed under the all-inclusive directions (AID) an amount equivalent to the deposits outstanding or up to a maximum of 5 lakh in 90 days.

A total of 21 insured banks have been placed under AID and the depositors of these banks will be getting funds under the deposit insurance scheme, DICGC said in a release on Tuesday

Necessary instructions have been issued to the banks to submit claims within 45 days after obtaining depositors' nod to claim deposit insurance, DICGC said in a release on Tuesday. The verification and settlement of the claims on submission by the banks shall be done within the next 45 days.

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 November 29, 2021) will be paid within 30 days of receipt (i.e., by December 29, 2021)," as per the DICGC release.

DICGC said depositors may contact the 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 in the list by 15 October.

Adhil Shetty, CEO, BankBazaar.com said, "The government has delivered on its earlier promise to help depositors with banks that had been placed under moratorium. The depositors were in a limbo because they could neither pull the money out nor make a deposit insurance claim. The new announcement will not just help those stuck depositors but also improve faith in the banking system, especially in smaller banks where these issues are seen to frequently happen."

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