About Rs 10,000 crore of depositors’ money in banks under Reserve Bank of India (RBI) moratorium — such as the Punjab and Maharashtra Cooperative (PMC) Bank and Guru Raghavendra Sahakara Bank — will be payable to eligible customers by November end, under the recently-notified Deposit Insurance and Credit Guarantee Corporation (Amendment) Act.
“While banks are yet to finalise the eligible account holders, initial estimates suggest the total amount to be around Rs 10,000 crore,” said a bank executive aware of the developments
A depositor is covered up to Rs 5 lakh, including principal and interest, across all accounts in a bank under the law. The limit was raised from Rs 1 lakh on February 4, 2020. DICGC, a wholly owned RBI subsidiary, provides insurance cover on bank deposits. As per the recent amendments, the distressed bank will collate details on accounts for which claims are admissible within the first 45 days, passing on the information to the DICGC, which will assess them over the next 45 days.