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Mumbai Feb. 23 The Deposit Insurance and Credit Guarantee Corporation (DICGC) has asked the Registrars of Co-operative Societies for an irrevocable undertaking to repay depositors' claims to DICGC when they (Registrars) liquidate a co-operative bank.

This is for the speedy claim settlement of depositors who have lost their money owing to the cancellation of a bank's licence. Co-operative banks are governed by the State Co-operative Societies Act and, hence, the liquidator of the banks is usually a registrar.

The undertaking will be to the effect that in the event the liquidation order is set aside, the settled amount has to be repaid to DICGC. This is, however, subject to the DICGC not being restrained by a court injunction from settling the depositors' claims.

DICGC, a subsidiary of the RBI, has been receiving representations from depositors about delays in settlement. "On an analysis, it is observed that such delays are mainly on account of court cases challenging the cancellation of licence or liquidation of banks and non-receipt of claim list from liquidators," said a DICGC press release.

The concerned Registrar of Co-operative Societies will be given one month's time for submission of claim lists. In the event of claim lists not forthcoming from the liquidators within the prescribed time, DICGC plans to issue an advertisement in the local newspaper.

More Stories on : Co-operatives | Fixed Deposits | General Insurance

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