Deposit claims worth Rs 752 cr settled in FY23: Financial Stability Report

Deposit Insurance and Credit Guarantee Corporation (DICGC) settled claims of Rs 751.8 crore during FY23.

In FY22, the corporation had settled aggregate claims of Rs 8,516.6 crore under different channels. Of this, the largest, of Rs 3,791.6 crore, was to Unity Small Finance Bank (USFB) for paying the depositors of the erstwhile Punjab and Maharashtra Co-operative Bank.

The urban cooperative bank had merged with UFSB with effect from January 25, 2022.

According to the Financial Stability Report, released on Wednesday, with the present deposit insurance limit of Rs 5 lakh, 98.1 per cent of the deposit accounts (estimated three billion) and 46.3 per cent of the assessable deposits (Rs 181.14 trillion) were insured.

 

In absolute terms, the insured deposits amounted to Rs 83.89 trillion as of March 31, 2023.

The deposit insurance premium received by DICGC grew 9.7 per cent (year-on-year) to Rs 21,381 crore during 2022-23. Of this, the share of the commercial banks was 94 per cent. The Deposit Insurance Fund with DICGC rose 15.5 per cent year-on-year during 2022-23 to reach Rs 1.70 trillion on March 31, 2023. 

The fund is built primarily from the premiums paid by banks, recoveries from settled claims and investment incomes, and net of income tax.