Shivaprasad Laxman Chhatre
Quick Summary
Efforts are made in this write-up to highlight the correct status of interim payment by DICGC to insured bank depositors, without getting too much into legal Jaron. Print media has been interchangeably using the terms directions and moratorium. Earlier the claims submitted by the official liquidator
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FAQ :
Eligible depositors can receive a maximum interim payment of Rs 5 lakhs.
Depositors can expect an interim payment within 90 days of the date the liability arises, which is typically when restrictions are imposed on accessing their bank deposits.
The DICGC becomes liable to make an interim payment when an insured bank is under directions, prohibition, order, or scheme that restricts depositors from accessing their funds, or when the bank's business is suspended.
The interim payment norm applies to all banks kept under directions of the RBI or under moratorium where depositors are restricted from accessing their deposits. It may not apply to delicensed banks or those solely under liquidation.
Yes, the timeline can be extended by up to another 90 days in specific circumstances, such as when finalizing a scheme for amalgamation, compromise, arrangement, or reconstruction of the insured bank.
The DICGC is not liable to make an interim payment if the RBI removes the restrictions on the bank, and the bank or transferee bank is in a position to pay depositors without any restrictions.
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