This demand was made when Mr Abyankar met the Union State Finance Minister Jayant Sinha in New Delhi last week. He drew the minister’s attention towards depositors’ suffering whenever a UCB is liquidated.
It deserves mention that on liquidation whatever the deposited amount a depositor’s claim cannot exceed Rs one lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Talking to Indian cooperative later Mr Abhyankar said even with a high deposit of Rs 10 lakh a depositor can claim back just Rs one lakh. Giving this example, he pinpointed the systematic injustice of the DICGC regulations.
”Minister heard me out patiently and promised to consider the issue,” Abhyankar said. “He was only worried that a separate act for the UCBs alone cannot be formulated on this issue as the DICGC limit applies to commercial banks as well, added Abhyankar.
Nafcub president expressed hope that this may come up in the next budget and a blanket act covering both commercial and urban cooperative banks may turn into a reality.
Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of the Reserve Bank of India. It was established on July 15, 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. The DICGC insures all bank deposits, such as saving, fixed, current, recurring for up to the limit of Rs. 100,000 of each deposit in a bank.
Indian Cooperative has learnt that Mukund Abhyankar met Jayant Sinha at the behest of Prime Minister Narendra Modi. As the Union Finance Minster Arun Jaitley is too tied up with budget preparations, Modi asked him to see Mr Jayant Sinha on the issue.
The Nafcub President did not forget to raise the perennial issue of exemption from income tax for the cooperative sector – an issue cooperative leaders of all hues having been raising all the while without any results so far.