There is good news for the customers of 16 banks. Now if the bank is submerged or bankrupt, their amount up to 5 lakhs is safe.
Under a new law related to DICGC, a subsidiary of the Reserve Bank of India (RBI), customers of 16 stressed co-operative banks will get a deposit insurance cover of up to Rs 5 lakh from Monday.
Punjab and Maharashtra Co-Operative Bank out of list
The Deposit Insurance and Credit Guarantee Corporation (DICGC) had earlier made a list of 21 banks for this, but five other co-operative banks, including the Punjab and Maharashtra Co-operative Bank, were excluded from the list after going through the resolution process. Parliament last month passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, which aims to ensure that account holders get Rs 5 lakh within 90 days of the RBI imposing restrictions on banks.
Contact with respective banks customer
This law has come into force from September 1, 2021, and the 90-day period will be completed on November 30, 2021 and the period of 90 days for payment in the first phase is ending on November 30. According to a notice issued by the DICGC, the depositors of these banks, who have not yet submitted their claims, can approach their respective banks.
Amount will be sent to another bank account linked to Aadhar card
“Depositors will have to give an officially valid document of identification and a written consent to receive the amount deposited in their account, subject to a maximum of Rs 5 lakh,” it said. Customers will also have to provide their separate bank account details to which the money can be sent. As per DICGC, depositors who have submitted valid documents will be transferred to another bank account linked to the Aadhar card.
