DICGC to pay upto Rs 5 lakh to depositors of 21 insured co-op banks

The banks include include Punjab & Maharashtra Co-Op Bank (PBC Bank) and City Co-operative Bank

Deposit Insurance and Credit Guarantee Corporation (DICGC) will pay the depositors of 21 insured cooperative banks, including Punjab & Maharashtra Co-Op Bank (PBC Bank) and City Co-operative Bank, upto Rs 5 lakh in 90 days.

These banks have been placed under direction with restrictions on withdrawal of deposits. Out of the 21 banks, 11 are from Maharashtra, 5 from Karnataka and one each from Uttran Pradesh, Kerala, Rajasthan, Madhya Pradesh and Punjab.

In June, the Reserve Bank of India gave “in-principle” approval to Centrum Financial Services Ltd (CFSL) to set up a small finance bank, which will take over the beleaguered Punjab