DICGC settles claims worth Rs 8,516.6 cr
The list includes 12.94 lakh depositors of liquidated banks, merged entities and those placed under restrictions by RBI
New Delhi: Deposit Insurance and Credit Guarantee Corporation (DICGC) settled claims amounting to Rs8,516.6 crore during 2021-22 of about 12.94 lakh depositors of liquidated banks, merged entities and those placed under restrictions by the Reserve Bank of India (RBI). All commercial banks, including branches of foreign banks functioning in India, local area banks, regional rural banks, small finance banks and payment banks, are covered under the Deposit Insurance Scheme.
Out of the Rs8,516.6 crore claims settled by the DICGC, Rs5,059.2 crore were towards liquidated and merged banks and Rs3,457.4 crore pertained to banks under All Inclusive Directions (AID) of the RBI, said the annual report of DICGC. Under AID, restrictions are imposed on withdrawals of deposit. The report said that during the fiscal ending March-2022, claims worth Rs5,059.18 crore were paid to nearly 10.34 lakh depositors of liquidated and merged banks. A total of Rs3,457.44 crore was paid to about 2.6 lakh depositors of banks under AID, it added.
All the claims were related to co-operative banks. "There were no claims from commercial banks," the report said.
DICGC, a wholly-owned subsidiary of the RBI, provides insurance cover on bank deposits. In 2020, the government had increased the insurance cover on deposits by five times to Rs 5 lakh. The enhanced deposit insurance cover of Rs 5 lakh came into effect from February 4, 2020. Later, DICGC Act was further amended under which the Corporation is required to provide insurance cover of up to Rs 5 lakh to the depositors of banks placed under AID by the Reserve Bank. DICGC said the number of fully protected accounts (256.7 crore) at end-March 2022 constituted 97.9 per cent of the total number of accounts (262.2 crore) in the banking system as against the international benchmark of 80 per cent. The total premium received by the DICGC during 2021-22 stood at Rs 19,491 crore, with commercial banks contributing 93.6 per cent and co-operative banks accounting for the remaining 6.4 per cent.
