DICGC Act: In the last two months, the banking sector’s regulator RBI has canceled the licenses of two co-operative banks. In August 2022, RBI first canceled the banking license of Rupee Co-Operative Bank. With effect from September 22, 2022, the rupee cooperative banks have had to stop operations. So on Thursday 22 September, RBI has also canceled the banking license of Lakshmi Co-Operative Bank. In such a situation, the big question arises that when will the account holders who have deposited their hard earned money in these cooperative banks finally get their money back.
How to get the money back of account holders and depositors
After the cancellation of the banking license of these banks, the RBI has said that after accounting of the bank, all the depositors will be given a maximum sum of Rs 5 lakh as insurance on the basis of their money deposited in the banks. . This amount will be given by the Deposit Insurance and Credit Guarantee Corporation (DICGC) under the DICGC Act 1961. Even if a depositor has more than Rs 5 lakh deposited in the bank, but they will be given only up to Rs 5 lakh as insurance amount.
The amount received by the account holders of Rupee Co-operative Bank
According to the information provided by the bank, 99 percent of the account holders of Rupee Co-operative Bank will be given the entire amount equal to their deposit by the Deposit Insurance and Credit Guarantee Corporation. Till May 18, 2022, DICGC has given Rs 700.44 crore as insurance amount to the depositors.
What does DICGC do
All deposits like savings, fixed current and recurring are now insured by DICGC. Even if the depositors have more than Rs 5 lakh in savings account or as FD, they are given a sum insured only up to Rs 5 lakh. If a bank goes bankrupt. So the amount up to Rs 5 lakh is given by the DICGC to all the depositors through the liquidator.
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