Module: General Practice
Q42: Scenario: The Reserve Bank of India imposes "All Inclusive Directions" on a stressed Co-operative Bank, restricting depositors from withdrawing funds. Under Section 18A of the DICGC Act, what is the timeline for DICGC to pay the insured amount to the depositors?
✅ Correct Answer: B
The timeline is Within 90 days.
This is known as the 90-Day Payout Rule, introduced by the DICGC (Amendment) Act, 2021.
Timeline Breakdown: 1. First 45 Days: The bank must submit the claim list (depositor details) to DICGC.
2. Next 45 Days: DICGC must verify the data and remit the payment to the depositors.
3. Total: 90 Days.
Significance: Prior to this amendment in 2021, depositors often had to wait for the final liquidation order, which could take years.
Section 18A ensures interim relief even while the bank is under moratorium.
This is known as the 90-Day Payout Rule, introduced by the DICGC (Amendment) Act, 2021.
Timeline Breakdown: 1. First 45 Days: The bank must submit the claim list (depositor details) to DICGC.
2. Next 45 Days: DICGC must verify the data and remit the payment to the depositors.
3. Total: 90 Days.
Significance: Prior to this amendment in 2021, depositors often had to wait for the final liquidation order, which could take years.
Section 18A ensures interim relief even while the bank is under moratorium.