The Reserve Bank of India (RBI) periodically reviews co-operative banks. Many times due to irregular or not following the rules, the RBI cancels their license or bans them for some time. The question is that in such a situation, if you also have an account in these banks and money in it, then what will happen to them? Because the RBI has banned the bank from doing any kind of transaction, deposit, loan etc.
Claim can be made up to Rs 5 lakh
Actually, the money deposited of an account holder in a bank is insured. However, this insurance maximum covers up to Rs 5 lakh. That is, no matter how much money is deposited in your bank account, but you can claim insurance up to just Rs 5 lakh. Let me tell you, in the event of the bank’s failure, there is a unit called DICGC, a deposit insurance and credit guarantee for the safety of the depositors, which insures bank deposits. DICGC is a subsidiary of the Reserve Bank of India. DICGC insures deposits such as savings, fixed, current, recurring etc.
According to the Reserve Bank of India, DICGC insures the principal and interest up to a maximum of five lakh rupees. For example, if the principal in a person’s account is 4,95,000 and earned interest 4,000, then the total amount insured by DICGC will be 4,99,000.
Know the customers of the banned bank
If a bank goes into liquidation, then within two months from the date of receiving the claim list from the DICGC liquidator, the claim amount of every depositor is responsible for paying up to five lakh rupees. The liquidator has to distribute the claim amount according to their claim amount to each insured depositor. In the event of a ban on the bank, the liquidator prepares the claim list according to the depositors and sends it to DICGC for investigation and payment. The DICGC pays money to the liquor that is responsible for paying the depositors.
New India Co-operative Bank case
RBI has dissolved the Board of Directors of New India Co-operative Bank Limited for 12 months. RBI has appointed former Chief General Manager of SBI Shrikanth as Administrator (Administrator) of the bank during this period. The Reserve Bank of India has also constituted a committee of advisors to assist the management. That is, the customer of the New India Co-operative Bank will now have to claim insurance up to Rs 5 lakh with DICGC.
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