RBI’s Moratorium: Relief for Depositors of PMC and SGRS Banks
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There is a relief likely for the depositors of banks under the Reserve Bank of India’s (RBI) moratorium, namely Punjab and Maharashtra Co-operative Bank and Sri Guru Raghavendra Sahakara Bank. Under the Deposit Insurance and Credit Guarantee Corporation (Amendment) Act, the eligible depositors have insured up to Rs.5 lakh. According to a bank executive, RBI is likely to spend around Rs.10,000 crore, as per the Economic Times. 

The insurance limit has increased from Rs.1 lakh to Rs.5 lakh on 4 February 2020. Rs.5 lakh includes principal and interest amount. The eligible customers are payable by the end of November 2021. The Deposit Insurance and Credit Guarantee Corporation (DICGC) aims to secure public confidence in the banking system via deposit insurance. The DICGC insures savings, fixed deposits, current deposits, recurring deposits, etc. It is a wholly-owned subsidiary of the RBI. 

The deposit payment process starts with the banks collecting the required information of the accounts, which takes 45 days. Then the DICGC will take another 45 days to process the claims made. 

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For any clarifications/feedback on the topic, please contact the writer at jyotsna.singh@cleartax.in

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