Mumbai: Customers from 21 failed cooperative banks, including the famous Punjab & Maharashtra Cooperative Bank (PMC), will return to their RS 5 Lakh deposits.
Savings insurance and Credit Warranty Corporation of India (DICC) said that, following the Amendment of DICC Law, it would make a payment to depositors within 90 days.
In addition to PMC, large banks include bank coop rupees, Cooperative Bank Kapol, Bank Maratha Coop, and City Coop Bank – all of Maharashtra.
Depositors at these banks have been waiting for years for their money.
Traditionally the RBI places problematic banks under ‘all-inclusive’ directions’, which means they cannot deal with their assets or liabilities without the central bank’s permission.
This is done after the bank changes it cannot be used.
In a normal course, depositors will be paid if all options fail and bank liquidation.
Payment will open the way for the PMC bank resolution plan delivered by Centrum and Bharat PE.
With most retail deposits out of the road, new promoters can get a better idea about balance liabilities on larger deposits and submit their plans.
With most obligations, rival cooperative may find it easier to combine several failed banks.
DICGC (Amandment) action – which was notified on August 27 and came into force on September 1 – allowing deposit insurance money to be paid in advance.
Depositors must submit their willingness to claim insurance.
Banks must submit a list of claims on October 15 and update positions on November 29 with the principal and interest in the updated last list.
Only depositors who have expressed their willingness to claim insurance will get their money.
Depositors in Maharashtra will be the biggest beneficiary with 11 failed banks here.
Eight other banks are Hindu Cage Bank, Bank Coop’s Life Needs, Padmashree Vithal Rao Vithal Coop Bank, Shri Anand Coop Bank, Manha Urban Coop Bank, SarjeraOrodada Rises Shirala Coop Bank and Independence Coop Bank.
There are five cooperative banks from Karnataka – Bidar Mahila Urban Coop Bank, Bank Coop Millaath, Bank GuruGhavendra Coop, Bank Coop Mudhol, and Deccan Urban Cooperative Bank.
The remaining five are Adoro Coop Bank from Kerala, Hindu Coop Bank (Punjab), Peoples Cooperative Bank (UP), Sikar Urban Cooperative Bank (Rajasthan) and Garha Cooperative Bank (MP).