From 01.09.2021, when the Deposit Insurance and Credit Guarantee Corporation (DICGC) (Amendment) Act, 2021 came into effect) to 30.11.2022, DICGC has settled deposit insurance claims of 3,06,146 eligible depositors of 35 banks under ‘All Inclusive Directions’ (AID), amounting to ₹4,055.10 crore. This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.
The Minister stated that the details related to settled claims are at ANNEX-I.
The Minister further stated the year-wise and bank-wise details (during the last ten years before the Amendment Act) of the claims settled by DICGC, repayment to DICGC of settled claims and percentage of recoveries are at ANNEX-II.
Giving more information, the Minister stated that 12 banks have since gone into liquidation after the deposit insurance amount was paid to the depositors of the banks in terms of Section 18A of the DICGC Act, 1961 during 01.09.2021 to 30.11.2022. The details are at ANNEX-III.
Giving more background information, the Minister stated that the DICGC Act, 1961, as amended through the DICGC (Amendment) Act, 2021 enables depositors to get time-bound access to their deposits up to ₹ 5 lakh through interim payments by DICGC within 90 days of imposition of ‘All Inclusive Directions’ (AID) by the Reserve Bank of India (RBI) on banks. Banks placed under AID are required to furnish a list of depositors showing the net outstanding deposits to the credit of each depositor in the same capacity and in same right within 45 days of imposition of AID. DICGC has to settle claims within the statutory timelines of 90 days after imposition of AID.