MARGAO
With the Central government notifying the Amendment to the Deposit Insurance Credit Guarantee Corporation Act, 2021 from September 1, beleaguered depositors of the Madgaum Urban Cooperative Bank (MUCB) can also look forward to receive back their deposits up to Rs five lakh within 90 days.
MUCB Managing Director, Kishor Amonkar, who has been appointed as the Designated Officer by the Liquidator SV Naik to oversee the liquidation process of the bank, has said the notification is also applicable to the MUCB bank which is now under liquidation.
The Parliament had earlier this year had passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to Rs five lakh within three months of the RBI imposing moratorium on the banks.
The amount of Rs 5 lakh would be provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
The Amendment has been notified by a gazette notification dated August 27, 2021, with the government setting September 1, 2021 as the date on which the provisions of the Act shall come into force.
Sources said the stressed bank is required to utilized the first 45 days of the 90 day period to obtain details of the accounts before forwarding the same to the insurance company. The depositors are then expected to receive their money by the end of the 90 day period.
“The notification is applicable to all stressed banks including the MUCB. The MUCB will following the guidelines contained in the Amendment to give relief to the depositors”, Amonkar said.
Sources said the Amendment was brought to the DICGC in view of the fact that it used to take years for the beleaguered depositors to receive their deposits from the stressed banks.
Protest pays as employees
to get their 2-month salary
MARGAO: MUCB Designated Officer Kishor Amonkar on Thursday said that the Bank liquidator SV Naik has given the green signal to disburse the two month salaries of the bank staff and employees before Ganesh Chathurti.
A day after the bank staff and employees held a protest at the Bank head office, Aquem on Wednesday, the Designated Officer said the Bank had already set in motion the process to disburse the salaries of the staff and employees.
“The liquidation process entails compliance of rules, including disbursement of salaries and opening of the bank accounts, which were frozen by the authorities. It is a process which needs to be complied with by the Liquidator. Taking into account the ground reality, the Liquidator had already set in motion the process for the disbursement of salaries before Ganesh Chathurti”, he said.’
