DICGC doles out Rs 3.5K crore to 22 UCBS

As per the RBI Annual Report 21-22, settlement of claims of liquidated urban co-operative banks totaling Rs 1,225 crore and Rs 3,792 crore was provided to Unity Small Finance Bank for making payment to the depositors of erstwhile Punjab and Maharashtra Co-operative Bank.

It is worth mentioning that an amendment to the DICGC Act in 2021-22 (relating to interim payments) helped settle claims worth Rs. 3,457 crore relating to 22 urban cooperative banks under AID.

The DICGC settles claims of depositors of banks liquidated/ amalgamated and banks under RBI’s all-inclusive direction (AID). Once AID is imposed on an urban cooperative bank, the bank cannot discharge its liabilities except as allowed by RBI.