Depositors in these 21 troubled banks will soon get compensation

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Depositors in Punjab and Maharashtra Co-Op Bank (PMC) and 20 other banks, where restrictions have been placed on withdrawals, will soon get an amount equivalent to the deposits outstanding. The amount has been capped at Rs 5 lakh per deposit.

The Deposit Insurance and Credit Guarantee Corporation (DICGC) has released the list of 21 banks. Depositors’ money is stuck in these banks due to curbs on withdrawals.

Details of the Banks

These banks include 11 banks from Maharashtra — City Co-operative Bank Ltd, Kapol Co-operative Bank Ltd, Maratha Sahakari Bank Ltd, Mumbai, Needs of Life Co-Operative Bank Ltd, Padmashree Dr. Vithal Rao Vikhe Patil, Punjab and Maharashtra Co-Op Bank Ltd, Rupee Co-Operative Bank Ltd, Shri Anand Coop. Bank Ltd. Pune, Sarjeraodada Naik Shirala Sahakari Bank Ltd., Independence Cooperative Bank Ltd, Nashik, Mantha Urban Cooperative Bank Ltd.

Five banks from Karnataka — Bidar Mahila Urban Co-op Bank Ltd, Millath Co-Operative Bank Ltd, Sri Guruaghvendra Sahakara Bank Niyamitha, The Mudhol Co-Operative Bank Ltd, Deccan Urban Co-Operative Bank Ltd—also figure in the list.

One bank each from Uttar Pradesh People’s Co-Operative Bank Ltd in Uttar Pradesh, Adoor Co-operative Urban Bank Ltd in Kerala, Hindu Co-op Bank Ltd in Punjab, Sikar Urban Co-Op. Bank Ltd in Rajasthan Garha Co-Operative Bank Ltd in Madhya Pradesh is also a part of the DICGC list.

DICGC notification

Necessary instructions have been issued to these banks to submit the claims within 45 days after obtaining the willingness of depositors to claim deposit insurance, according to the latest notification issued by the DICGC.

Depositors should contact 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 by the bank in the list by October 15, 2021, said the notification.

Claim forms will be available in the respective banks, in which the account number, mobile number, e-mail, branch and amount will have to be filled.

These 21 banks have been asked to submit a claim list by October 15, 2021, and update the position as on November 29, 2021 (with principal and interest) in a final updated (second) list. The unpaid or difference in the amount of deposits up to the eligible amount (as per the final updated list submitted by November 29, 2021) will be paid within 30 days of receipt, i.e., by December 29, 2021, according to the report by Zeebiz.com.

According to a recent notification, only those depositors who have given willingness to the insured bank will be paid as per Section 18 A of the Act.