Depositors of 21 stressed cooperative banks to get Rs 5 lakh by November

The DICGC in a statement said only those depositors who have submitted their willingness to the insured banks would get money.

Depositors of 21 stressed cooperative banks, including the Punjab & Maharashtra Co-operative Bank (PMC Bank), would get up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) within 90 days.

Withdrawals of deposits from these banks were restricted by the Reserve Bank of India (RBI). Maharashtra has 11 banks, Karnataka has five, and Uttar Pradesh, Kerala, Rajasthan, Madhya Pradesh, and Punjab.

The news comes after Parliament enacted the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021, which guarantees account holders up to Rs 5 lakh within 90 days of the RBI imposing a bank suspension.

The administration set September 1 as the day on which the Act’s provisions would take effect. On November 30, the mandatory 90-day period from the notification date expires.