A total of 77,819 depositors of three urban cooperative banks (UCBs) that have gone bust will be paid deposit insurance up to ₹5 lakh under the newly expanded scheme of the Deposit Insurance and Credit Guarantee Corporation, Union Minister Pralhad Joshi has said.
He was speaking here on Sunday after participating online in ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to ₹5 Lakh’ programme chaired by Prime Minister Narendra Modi.
The Union Government recently brought in amendments to raise the ₹1 lakh deposit insurance to ₹5 lakh to ensure maximum number of depositors are benefited. They have also introduced a 90-day deadline for insurance payments to the depositors in case a bank goes bust.
“As many as 33,000 depositors of Guru Raghavendra Cooperative Bank have received a total of ₹753.61 crore on November 29,” Mr. Joshi said. A few depositors symbolically received the cheque from the Union Minister at the event in the city on Sunday.
Similarly, 77,819 depositors of Mudhol Cooperative Bank of Bagalkot district, Deccan Urban Cooperative Bank of Vijayapura, and Millath Cooperative Bank of Davangere and Chitradurga districts would be paid a deposit insurance in the coming days, the Minister said.
