promised to get their deposits back (up to ₹500, 000) within 90 days from the start of the moratorium. These regulations were later amended in the DICGC Act, which were was passed by the parliament in its Monsoon Session last month.
According to Finance Minister Nirmala Sitharaman, under the recent adjustments, the 90-day deadline will be divided into two. The stressed bank will be given the first 45 days to collate all the details regarding the claims and deliver them to the Deposit Insurance and Credit Guarantee Corporation (DICGC). Thereafter, the organisation, a wholly-owned subsidiary of the RBI, is given another 45 days to settle the payment to each eligible depositor.
“Normally, it takes 8 – 10 years after complete liquidation to get money under insurance; but now, even if there is a moratorium, within 90 days, the process will definitely be completed, giving relief to depositors,” the Minister said during a press briefing.
The website of the central bank shows that some of the banks which are currently under moratorium include the Garha Co-operative Bank Ltd, in the Guna district, the Independence Co-operative Bank Ltd in Nashik and Deccan Urban Co-operative Bank Limited, in Vijayapura.
