In a ray of hope for depositors of stressed banks such as Punjab and Maharashtra Cooperative (PMC) Bank, customers of these lenders are now eligible for getting up to 5 lakh rupees back from November 30 this year. The development comes as the government has notified the amendment to the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act.
Earlier in August, Parliament had passed the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021 ensuring that account holders get up to 5 lakh rupees within 90 days of the RBI imposing moratorium on the banks.
The amount of 5 lakh rupees would be provided by the Deposit Insurance and Credit Guarantee Corporation. The government has notified the provisions of the Act shall come into force from today, according to a gazette notification dated August 27, 2021.