[ad_1]
Deposit Insurance coverage and Credit score Assure Company settled claims amounting to Rs 8,516.6 crore throughout 2021-22 of about 12.94 lakh depositors of liquidated banks, merged entities and people positioned underneath restrictions by the Reserve Financial institution.
All business banks, together with branches of international banks functioning in India, native space banks, regional rural banks, small finance banks and cost banks, are coated underneath the Deposit Insurance coverage Scheme.
Out of the Rs 8,516.6 crore claims settled by the DICGC, Rs 5,059.2 crore had been in the direction of liquidated and merged banks and Rs 3,457.4 crore pertained to banks underneath All Inclusive Instructions (AID) of the RBI, stated the annual report of DICGC.
Below AID, restrictions are imposed on withdrawals of deposit.
The report stated that through the fiscal ending March-2022, claims price Rs 5,059.18 crore had been paid to just about 10.34 lakh depositors of liquidated and merged banks.
A complete of Rs 3,457.44 crore was paid to about 2.6 lakh depositors of banks underneath AID, it added. All of the claims had been associated to co-operative banks.
“There have been no claims from business banks,” the report stated.
DICGC, a wholly-owned subsidiary of the RBI, offers insurance coverage cowl on financial institution deposits.
In 2020, the federal government had elevated the insurance coverage cowl on deposits by 5 occasions to Rs 5 lakh. The improved deposit insurance coverage cowl of Rs 5 lakh got here into impact from February 4, 2020.
Later, DICGC Act was additional amended underneath which the Company is required to offer insurance coverage cowl of as much as Rs 5 lakh to the depositors of banks positioned underneath AID by the Reserve Financial institution.
DICGC stated the variety of totally protected accounts (256.7 crore) at end-March 2022 constituted 97.9 per cent of the full variety of accounts (262.2 crore) within the banking system as in opposition to the worldwide benchmark of 80 per cent.
The whole premium acquired by the DICGC throughout 2021-22 stood at Rs 19,491 crore, with business banks contributing 93.6 per cent and co-operative banks accounting for the remaining 6.4 per cent.
The report stated a landmark occasion throughout 2021-22 was the modification to the DICGC Act 1961 which enabled time-bound interim cost to depositors of banks positioned underneath AID by the RBI, a apply typically not noticed in different jurisdictions.
“Pursuant to those amendments, the claims of depositors of twenty-two city co-operative banks positioned underneath AID had been settled by the DICGC…,” the report stated.
One other main occasion was the availability of economic help to the Unity Small Finance Financial institution (USFB) for making deposit insurance coverage cost to depositors of the erstwhile Punjab and Maharashtra Co-operative Financial institution (PMCBL) upon merger.
The variety of insured banks registered with DICGC stood at 2,040 as on March 31, 2022
Because the inception of deposit insurance coverage, a cumulative quantity of Rs 295.9 crore was paid as much as March 31, 2022 in the direction of claims of 27 business banks, Rs 10,524.3 crore in the direction of claims of 374 liquidated co-operative banks (together with Rs 5,059.2 crore settled throughout 2021-22), and Rs 3,457.4 crore in the direction of claims of twenty-two city co-operative banks positioned underneath AID.
The Deposit Insurance coverage Act, 1961 got here into drive on January 1, 1962.
Source link