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DICGC coverage query

For the banks under the DICGC coverage, how the DICGC covered for following scenario and in case of Bank liquidation, what will be the claim amount A is having Rs 5L Deposit in a X Bank B is having Rs 5L Deposit in the X Bank A&B jointly having another Deposit of Rs 5L in the X Bank

( Bangalore, Karnataka )

1 month ago

Reply

Dear Client,
According to DICGC, each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force. The Deposit Insurance Credit Guarantee Corporation (DICGC) insures bank deposits up to a maximum of ₹5,00,000 (Rupees Five Lakhs) for both principal and interest, with restrictions on withdrawal of deposits. This insurance covers each depositor within a bank in the same right and capacity. All commercial banks, including branches of foreign banks functioning in India, local area banks, and regional rural banks, are insured by the DICGC. If you have deposits with more than one bank, the deposit insurance coverage limit is applied separately to the deposits in each bank. Your funds from each bank would be insured separately, regardless of the date of closure of the Bank. In the event of a bank's liquidation, the liquidator prepares a depositor-wise claim list and sends it to the DICGC for scrutiny and payment. The DICGC pays the money to the liquidator, who is liable to pay it to the depositors. In the case of the amalgamation/merger of banks, the amount due to each depositor is paid to the transferee bank. Hope the query stands clarified.