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September 15, 2008

Payment of Deposit insurance Premium though RTGS

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March 31, 2008

Payment of Deposit insurance Premium though RTGS

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November 27, 2007

Maintenance of Separate Data for Insured Deposits

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April 26, 2007

DICGC gives further relief to bank customers:
amends Policy to repay joint account holders

The Deposit Insurance and Credit Guarantee Corporation (DICGC) has reviewed its policy for settlement of claims of joint account holders in the event of liquidation of a bank. As per the revised policy the deposits held in two separate joint accounts in combination of say "A" and "B" and "B" and "A"; will now be treated as two separate accounts, and each category of the joint account will be eligible for a claim upto Rs. one lakh. Similarly, a joint account of "X", "Y" and "Z" will be treated as different from the joint account of "Y", "Z" and "X" or "Z". "X" and "Y", for the purpose of settlement of claims and claims in each category account will be paid upto Rs. one lakh. The policy has been revised in response to representations received from affected depositors. Often husband and wife having independent source of income maintained joint accounts for operational convenience. The revised policy is expected to bring relief to depositors who maintain such accounts.

It may be noted that deposits of all banks are insured upto Rs. one lakh. The DICGC pays insurance claims of depositors upto Rs. one lakh in the event a bank is taken for liquidation. So far, DICGC used to settle the claims of all joint accounts in "the same capacity and the same right" upto Rs. one lakh, for all combinations of the same set of depositors. This meant that joint accounts of "A" and "B" and "B" and "A" in the same bank were treated as one account and the claims were settled for only upto Rs. one lakh aggregating the balance in both accounts together. Thus, if a husband and a wife having independent sources of income opened two joint accounts for operational convenience as "A" and "B" and "B" and "A", their claim was payable only upto Rs. one lakh.


(A.B. Balwatkar)
Press Release: 2007-2008 General Manager


October 31 , 2005

No.DICGC/Policy/ 96 /2005-06

The Chief Executive Officer of all insured banks

Dear Sir,

Public awareness on Deposit Insurance: Providing link to DICGC website in your bank’s website

As you may be aware, the Corporation has hosted its website (www.dicgc.org.in) where the information in regard to the brief history of the Corporation and its various functions as also replies to the frequently asked questions (FAQs) have been provided. This information have been provided to explain the scheme of deposit insurance and to instill confidence in the minds of the depositors. In order to increase the public awareness we would appreciate if a link to DICGC website (www.dicgc.org.in ) is provided in your bank’s website as already done by some banks. You will agree that this gesture will go a long way in reassuring your account holders that deposit insurance cover is available to them.

Yours faithfully,

Sd/-
(R. Kausaliya)
Deputy General Manager

 


DICGC releases Rs.411 crore towards settlement
of claims on account of co-operative banks in Gujarat

The Deposit Insurance and Credit Guarantee Corporation (DICGC) today released over Rs.411 crore towards settling the claims of the depositors of the following seventeen co-operative banks in Gujarat. The licences of these banks were cancelled by the Reserve Bank of India during the recent past. More than 7 lakh depositors will be benefited.

1. Baroda People’s Co-operative Bank, Baroda
2. The Co-operative Bank of Umreth
3. Shree Patni Co-operative Urban Bank Ltd., Gujarat
4. The Classic Co-operative Bank Ltd., Surat
5. Sabarmati Co-operative Urban Bank Ltd., Gujarat
6. Matar Nagrik Sahkari Bank Ltd., Gujarat
7. Diamond Jubilee Co-operative Bank Ltd., Gujarat
8. Petlad Commercial Co-operative Bank Ltd., Gujarat
9. Nadiad Mercantile Co-operative Bank Ltd., Gujarat
10. Shreenathji Co-operative Bank Ltd., Gujarat
11. Shree Vikas Co-operative Bank Ltd., Gujarat
12. Textile Processors Co-operative Bank Ltd.
13. Pragati Co-operative Bank Ltd.
14. Ujawar Co-operative Bank Ltd.
15. Sunav Nagrik Sahkari Bank Ltd.
16. Visnagar Nagrik Sahakari Bank Ltd.
17. Charotar Nagrik Sahakari Bank Ltd.


Right to Information Act, 2005


The Deposit Insurance and Credit Guarantee Corporation has designated Smt. R.Kausaliya as Chief Public Information Officer under the Right to Information Act, 2005. She can be contacted at -

cpiodicgc@rbi.org.in or apiodicgc@rbi.org.in

Tel : 022-2301 9570
Fax : 022-2301 5662 or Fax : 022-2301 8165

The Deposit Insurance and Credit Guarantee Corporation will shortly announce details of the scheme.


 May 3, 2005

Ref.No.DICGC/DID/704/05.03.01.01/2005-06

To All Insured Banks

Dear Sir,

Maintenance of Separate Data for Insured Deposits

It has been decided that all the insured banks should maintain separate data for deposits that are eligible for insurance cover.

2. In view of the above, you are requested to start maintaining, if not already being done, separate data on deposits that are eligible for insurance cover. Such data may be maintained in a separate register and/or in electronic form. Maintenance of such data will be helpful to you in properly monitoring in remittance of premium so as to avoid penal interest and also in timely submitting statements like DI-01, DI-02, etc., to the Corporation.

3. Insured banks are free to devise their own format for maintaining such data. However, basic information, such as total deposits, assessable deposits, deposits which are not eligible for insurance cover, insured deposits, insurance premium paid, various statements sent, etc., must be captured in the data. While compiling/maintaining the data, the bank should be guided by the definition of "Deposit" under Section 2 (g) of the DICGC Act, 1961 and our clarifications on term "Deposit" (as per the Annexure).

Yours faithfully,

Sd/-

(Pradeep Kumar)
Assistant General Manager

 


March 14, 2005

DICGC/POLICY/201/06.09.03/2004-05

To the CEO’s of insured banks,

Increase in DICGC’s deposit insurance premium in two phases – from 5 paise to 10 paise per Rs.100 of Assessable Deposits per annum

Please refer to our circular DICGC/POLICY/150 /06.09.02/2004-05 dated February 3, 2004 on the captioned subject (copy enclosed). As stated therein, the deposit insurance premium in the first phase was enhanced from 5 paise to 8 paise per Rs.100 of Assessable Deposits for the financial year 2004-05. The second phase of upward revision of premium to 10 paise per annum per Rs. 100 of Assessable Deposits will be effective from the financial year 2005-06.

2. The revised premium of 10 paise per annum per Rs.100 of Assessable Deposits will be payable by all the insured banks from the half year beginning April 2005 onwards. You are therefore requested to issue necessary instructions to the concerned department/officials of your bank.

3. The circular may be placed before the Board of Directors of your bank and compliance thereof may be confirmed.

Yours faithfully,

(Anand Sinha)
Chief General Manager


Govt. of India Resolution on Public Interest Disclosures & Protection of Informer


Deposit Insurance Scheme, 1961 –
Settlement of claim list of depositors -

The Deposit Insurance & Credit Corporation has settled the deposit insurance claims submitted by the liquidator of the Charotar Nagarik Sahakari Bank Ltd. Anand(under liquidation) for making disbursement to the depositors whose claims have been found to be eligible as per provisions of DICGC Act 1961


June 14, 2004.

No. DICGC/DID/ 455 /05.03.01.01/2004-05    

The Chief Executive Officer of
all insured banks.

Dear Sir,

Change in periodicity for submission
of DI-02 returns

As you are aware, the periodicity of payment of deposit insurance premium and submission of DI-01 return has been changed with effect from 1st October 2003. However, the registered insured banks are required to submit to us on or before 31st August each year, a return in the Form DI-02 giving the details of distribution of deposit accounts according to their size as on the last working day of the month of June.

2. With a view to aligning with the change in periodicity of payment of deposit insurance premium and submission of DI-01 returns, it has been decided to revise the periodicity of the DI-02 returns from the last working day of June to the last working day of September and the same is required to be submitted on or before 31st October every year. Accordingly, the DI-02 return for the year 2004 is to be compiled on the basis of the size of the deposits as on the last working day of September 2004 and forwarded to the Corporation on or before 31st October 2004.

3. Non submission of the DI-02 returns within the stipulated time will invite penalty
as stipulated in Section 47 of DICGC Act, 1961.

Yours faithfully

Sd/-
(R.K.Acharya)
Deputy General Manager.

 


May 6 , 2004

DICGC/ DID/ 210 / 05.03.01.01/ 2004-05                        

The Chief Executive Officers
of all Insured co operative Banks.

Dear Sir,

Submission of DI01 Returns in the revised form

It has been brought to our notice that some of the insured co-operative banks have opted to register as Co-operative Societies under various Co-operative Societies Acts which do not comply with Section 2 (gg) of DICGC Act, 1961. Such Co-operative banks are therefore not eligible for deposit insurance from the Corporation. It is considered necessary for the Corporation to have names of those banks, which are not eligible or otherwise to be registered as insured banks.

2.With a view to collecting data in this regard, it has been decided that the Co-operative banks should indicate their present status of registration under various Co-operative Societies Acts, at the time of payment of deposit insurance premium from the half year April to September 2004.

3.Accordingly you are requested to

  • submit an authenticated copy of the certificate of registration under which the bank is registered as a co-operative bank.

  • indicate in DI-01 return name of the Act under which the bank is registered as a co-operative bank and certify that the bank is an "eligible co - operative bank " as defined in Section 2 (gg) of DICGC Act, 1961.

It may please be noted that in the absence of the above information we will not be in a position to process the premium remittance received from you and update the premium position of your bank.

Yours faithfully

Sd/-
(R.K.Acharya)
Dy. General Manager.


February 28, 2004

No. DICGC/DID/3342 /05.03.01.01/2003-04                     

The Chief Executive Officers
of all insured banks.

Dear Sir,

Public Awareness on Deposit Insurance.

As you may be aware, the Corporation has hosted its website (www.dicgc.org.in) where the information in regard to the brief history of the Corporation, and its various functions as also replies to the frequently asked questions (FAQs) has been provided. This information has been provided to explain the concept of deposit insurance and to instill confidence in the minds of the depositors.

2. You will appreciate that all your depositors, particularly the small depositors, would not be in a position to visit our website. Therefore, with a view to giving such depositors necessary assurance regarding safety and security of their deposits with your bank, we forward herewith the text on deposit insurance together with a copy of the poster which is given to all banks for display when they are registered. We advise you to get these printed according to your requirements in the language generally read and understood by your account holders. The booklet on deposit insurance may be made available to the depositors and the poster must invariably be displayed prominently in the premises of each and every branch. The availability of deposit insurance cover upto Rs.1 lakh for deposits held in the same capacity and same right must be highlighted prominently at all places wherever depositor interaction is involved such as amongst others account opening forms, fixed deposit receipts, pay-in slips, account statements, passbooks, web-sites, and all types of stationary and letter heads etc.

3. Needless to say, this gesture will be in your own interest, as it will go a long way in reassuring your account holders that deposit insurance cover is available to them.

Yours faithfully,
(Anand Sinha)
Chief General Manager



February 28, 2004

Ref: DICGC/DID/ 3343 /05.03.01.01/ 2003-04                       
The Chief Executive Officers
of all Insured Banks.

Dear Sir,

Display of names by co-operative Banks as registered with the Corporation.

It is observed that some of the banks do not display their names as has been entered in the books of the Corporation as an insured bank. For example, some of the Co-operative banks do not use the word 'Co-operative' in their names as registered with the Corporation at the time of their registration as insured banks and use their names in abridged (short) form on various stationery items, advertisement, hoardings, name boards etc. The misleading use of name by such banks not only causes confusion in the minds of general public but also does not show the correct status of the co-operative banks.

2. You are therefore advised to ensure that display or reference of the name of your bank in all advertisements, signboards, posters, leaflets or communications, returns or any other representation made by the bank is made with same name as has been registered in the books of the Corporation as an insured bank and there is no discrepancy in making such display or reference.

3. Please acknowledge the receipt of this circular.

Yours faithfully
Sd/-
(Anand Sinha)
Chief General Manager.


February 3, 2004

DICGC/POLICY/150/06.09.02/2003-04

To the CEO’s of insured banks,

Increase in DICGC’s deposit insurance premium in two phases - from 5 paise to 10 paise per Rs. 100 of Assessable Deposits per annum

As you may be aware, the Corporation has had to settle claims for large amounts in the last 3 years due to the failure of banks, particularly in the Co-operative Sector causing a drain on the Deposit Insurance Fund (DIF). While there is sufficient corpus in Deposit Insurance Fund for the present, it is necessary to build up a sound DIF in the long term to protect the interests of the banking system. With this objective in view the Corporation has as per Section 15(i) of DICGC Act, with RBI’s approval, decided to enhance the deposit insurance premium that has been 5 paise per Rs. 100 per annum of assessable deposits since 1993.

2. The premium will be raised to 10 paise per Rs. 100 of assessable deposits per annum in a phased manner over a period of two years. In the first phase the premium would be raised to 8 paise per Rs.100 of Assessable Deposits from the financial year 2004-05 and 10 paise per Rs.100 of Assessable Deposits from the financial year 2005-06. Thus the premium of 8 paise will be payable for the half years beginning April and October 2004 and the premium of 10 paise will be payable from the half year beginning April 2005 onwards.

3. The Corporation will continuously review the DIF and will consider revising the premium further from time to time with the objective of maintaining a strong DIF.

Yours sincerely,
Sd/-
(Anand Sinha)
Chief General Manger


Relocation of the Head Office of DICGC

Please note that the Head office of DICGC currently located at Marshall Building, Ballard Estate, Mumbai – 400 001 will be relocating to its new premises:

Deposit Insurance and Credit Guarantee Corporation
Reserve Bank of India, Byculla Office, 2nd Floor,
Mumbai Central,
Mumbai Central, Mumbai – 400 008

2. All your correspondences may be sent to the new address mentioned above. Our office at CBD Belapur, New Mumbai will continue to function at its current address. You are requested to visit our website www.dicgc.org.in where we will be posting our new telephone/fax numbers in due course. All our previous correspondences including the detailed circular on calculation of premium on change in periodicity is posted on the website.

3. Kindly e-mail us at dicgc@rbi.org.in and a copy to pnkarkera@rbi.org.in the e-mail address of your bank so that the same could be added to our mailing list. You may also nominate a nodal officer and communicate his name, contact number and address. This will facilitate us to establish faster and more effective lines of communication.


Change in Periodicity of Premium Payment

No. DICGC/DID/341/05.03.01.01/2003-04 August 11, 2003

The Chief Executive Officers
of all insured banks.

Dear Sir,

Change in periodicity for payment of deposit insurance
Premium - revised procedure

Please refer to our circular letter No. DICGC/DID/315/05.03.01.01/2003-2004 dated July 22, 2003 on the captioned subject. We enclose herewith, a copy of the Notification forwarded by the Corporation to Government of India for publication in the Official Gazette notifying amendments to Regulation 19 and 20 of the Deposit Insurance & Credit Guarantee Corporation General Regulations, 1961. The amendments have been duly approved by the Reserve Bank of India and the Board of Directors of the Corporation. The amendments shall come into force with effect from 1st October 2003.
2. The aforesaid amendments have been made to simplify the existing procedure for payment of deposit insurance premium. Consequent on the above amendments, the following changes in the procedure for payment of deposit insurance premium have been made.
(i) the half yearly periods for payment of deposit premium have been changed from January-June & July-December to April-September & October-March respectively to coincide with the half-yearly and yearly closing of accounts of the insured banks. Accordingly, the insured banks are required to pay deposit insurance premium in advance for half years April-September and October-March instead of January-June and July-December as at present.

(ii) The premium is to be paid on the total deposits as at the close of business on the last working day of the preceding half-year instead of last Friday of the preceding half year i.e. for payment of premium in advance for the half-year April-September and October-March, the premium should be calculated on the total deposits as at the close of business on the last working day of relative preceding half year i.e. March & September respectively.

(iii) The advance premium for the respective half year shall be paid within two months from the beginning of the half year i.e. the premium for the half years April-September and October-March shall be paid as soon as possible after the commencement of the half year but in any event not later than the last day of the second month of the relative half year i.e. May and November respectively.

(iv) As the second proviso to sub-regulation (2) of Regulation 19 has been deleted, the insured banks need not pay the difference by way of adjustment of the advance premium paid at the beginning of the half year and the actual premium payable for that half year. However, where the registration of an insured bank has been cancelled, the actual premium payable by such bank in respect of the period in a half year upto the date of such cancellation shall be determined on the basis of the deposits outstanding on the date of cancellation of its registration as an insured bank,

(v) The revised format of DI-01 Return to be submitted by the banks while paying premium in advance under the revised procedure from the half year October 2003-March 2004 is enclosed.

3. As you are aware, under the existing system, the advance premium due for half year July-December, 2003 is to be paid latest by 31st July 2003. Since the above revised procedure shall come into force with effect from 1st October 2003, all the insured banks have already been advised vide our letter No.DICGC/DID/315/05.03.01.01/2003-04 dated 22th July 2003 to pay the advance premium for the period July-September 2003 (i.e for three months only).

4. The premium for the revised period of three months viz. July-September 2003 is to be remitted along with the adjustment for the half year January-June, 2003 i.e. difference between the advance premium due in January 2003 (on the basis of total deposits as at the close of business on the last Friday of the preceding half year i.e December 2002 ) and the actual premium payable for January-June (on the basis of the total deposits as at the close of business on the last Friday of June, 2003) not later than 31st July 2003.

5. However, in case your bank has already remitted the advance deposit insurance premium for the half year July-December 2003 under the existing procedure, the same will be appropriated towards the premium dues for the intervening period of July-September 2003 along with adjustment factor and the balance available if any will be adjusted towards premium for the subsequent half year October 2003-March 2004 under the new procedure.

6. Please note that the revised procedure for payment of deposit insurance premium shall come into force from 1st October 2003. Under the revised procedure all insured banks are allowed to pay the premium in advance within two months from the beginning of the half-year as against within one month under the old procedure. Moreover, the insured banks need not calculate and pay the adjustment in the premium paid in advance and the actual premium payable for that half year. All insured banks are therefore advised that they should pay the premium dues for the respective half year within the time schedule prescribed above.

Yours faithfully,

Anand Sinha
Chief General Manager


Payment of Deposit Insurance Premium
by Insured Banks - Change in Periodicity

It has been decided to with prior approval of Reserve Bank of India to change the periodicity for payment of deposit insurance premium with effect from 01st October 2003. The necessary Amendments have been made to the DICGC General Regulations 1961 changing the periodicity for payment of advance premium from the present calendar half year (January - June and July - December) to the financial half year (April - September and October - March) respectively. Therefore, for the intervening quarter of July - September 2003, all the insured banks are required to remit their premium at the existing rate of 5 paise per Rs.100 per annum based on the Assessable deposits as on the last Friday of June 2003. In case some banks have already remitted insurance premium for the half year July - December 2003, it will be appropriated towards premium due for the quarter July - September 2003 and the excess, if any, will be kept to their credit and adjusted against the premium dues for the half year October 2003 - March 2004. The Government of India has been requested to arrange to issue the necessary notification in the Official Gazette. A detailed circular in this regard will be issued to all the insured banks shortly