Business Daily from THE HINDU group of publications
Sunday, Jun 28, 2009
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Business Daily from THE HINDU group of publications Sunday, Jun 28, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Money & Banking
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Co-operatives Rs 195 cr in claims by co-op bank depositors settled Our Bureau Mumbai, June 27 The Deposit Insurance and Credit Guarantee Corporation (DICGC) has settled claims amounting to Rs 195 crore from depositors of 28 Urban Co-operative Banks (UCBs) in FY09. In the corresponding period last year, the deposit insurer, which is governed by the DICGC Act, 1961, paid claims amounting to Rs 155 crore to the depositors of 24 UCBs. Among others, DICGC has settled the claims of depositors of District Co-operative Bank Ltd, Gonda, UP (Rs 45.41 crore), Shree Balasaheb Satbhai Merchant Co-operative Bank Ltd., Copergaon, Maharashtra (Rs 22.93 crore), the Maratha Co-operative Bank Ltd, Hubli, Karnataka (Rs 17.74 crore), Parivartan Co-operative Bank Ltd, Mumbai, Maharashtra (Rs 16.71 crore), and Ravi Co-op Bank Ltd, Kolhapur, Maharashtra (Rs 16.23 crore). The maximum number of deposit insurance claims is from UCBs in Karnataka (9), Maharashtra (7), and Gujarat (4). According to the DICGC Act, deposit insurance cover is limited to Rs 1 lakh a depositor for deposits held by him/her in “the same capacity and in the same right” at all branches of a bank taken together. The Corporation insures all bank deposits such as savings, fixed, current, recurring, etc. The premium (at the rate of Rs 0.10 for every Rs 100 deposit) paid by the insured banks to the Corporation is borne by banks themselves and not passed on to the depositors. Long-winded process“Depositors should not put all their eggs in one basket. They would do well to limit their deposits in individual banks, especially the urban co-operative banks, to the extent of the insurance cover available. “The settlement of deposit claim is a long-winded process,” said Mr Ashok Ravat, Honorary Secretary, All-India Bank Depositors’ Association. According to DICGC’s annual report, on an average, it takes 53 days to settle a claim after the corporation receives a claim. Further, on an average, it takes 605 days between de-registration of a bank and claim settlement (due to submission of supplementary claims by liquidators of old liquidated banks). More Stories on : Co-operatives | Fixed Deposits
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