Q11: For a bank under liquidation, if a customer's deposit was covered by DICGC at the time of transfer to the DEA Fund, how does the Liquidator handle the claim (up to the insured amount)?

The Liquidator first pays the depositor from liquidation funds, and then claims reimbursement from the DEA Fund.

The Liquidator instructs the depositor to file a claim with the DICGC directly.

The Liquidator can claim an amount equivalent to the DICGC insurance cover from the DEA Fund, and then make the payment to the depositor.

The Liquidator pays the depositor, and claims the amount from the DICGC, not the DEA Fund.

✅ Correct Answer: C

If the deposit was covered by DICGC, the Liquidator can claim an amount equivalent to what could have been claimed from DICGC (e.g., up to 5 lakh) from the DEA Fund, and then use that amount to pay the depositor.

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Q11: For a bank under liquidation, if a customer's deposit was covered by DICGC at the time of transfer to the DEA Fund, how does the Liquidator handle the claim (up to the insured amount)?

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