Through this, it has been ensured that the deposit holders of the bank get deposits up to Rs 5 lakh within 90 days of the ban on the functioning of a bank by the RBI.
New Delhi: The government has notified the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act. With this, customers of stressed banks like Punjab and Maharashtra Co-Operative (PMC) Bank will get guaranteed deposits of up to Rs 5 lakh from November 30. Parliament has passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 this month. Initially passed.
This amount will be provided by the Deposit Insurance and Credit Guarantee Corporation. According to the notification published in the Gazette on 27th of this month, the government has notified September 1, 2021 as the date of coming into force of the provisions of the Act.
It said, “In exercise of the powers conferred under sub-section (ii) of section 1 of the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, 2021, the Central Government shall, from the date of commencement of all the provisions of the Act, the 1st day of September, 2021.” That is, according to this, the period of 90 days for depositors to receive funds is November 30, 2021.
DICGC is a wholly owned subsidiary of RBI
Under this law, depositors of 23 co-operative banks will also come, which are under financial pressure and on which some restrictions have been imposed by the Reserve Bank. DICGC is a wholly owned subsidiary of RBI. This bank provides insurance for deposits. At present it takes 8 to 10 years for depositors to get their sum assured and other claims from financially stressed banks.
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