90 days from when the RBI imposed a moratorium on the banks. Under the new regulations, the 90-day deadline was divided into two, with the first 45 days being given to these banks to collate all the details regarding the claims and deliver them to the Deposit Insurance and Credit Guarantee Corporation (DICGC). Thereafter, the DICGC, a wholly-owned subsidiary of the RBI, was given the remaining 45 days to settle the payments to each eligible depositor.
Accordingly, depositors of 16 cooperative banks that went bust are set to receive their deposit insurance claims on Monday (29 Nov), under the new regulations. “The claims should be supported by officially valid documents of identity and written consent to receive the amount lying in credit of their deposit account (willingness declaration) subject to a maximum of ₹5 lakh along with alternate bank account details into which the said amount may be credited,” DICGC said in a public notice.
According to the organisation, depositors who have submitted the above documents will be paid by credit to an alternate bank account specified by the depositor.
A list of 21 banks was originally prepared by the DICGC, but five of them were later removed as they were awaiting a merger or were out of the moratorium. The deposit insurance firm advised depositors of these 16 banks who have not yet submitted their claims to do so by contacting their respective banks. The deadline for the late submissions is 10 December, while the deadline for settlement is New Year’s Eve.
