DICGC Act: If a bank closes down due to any reason, then how do the depositors get their money back? Let us tell you what is the process for this.
Bank Claim: People deposit their money in banks to keep it safe. There are many banks in India in which people open accounts according to their convenience. But where people deposit their money in banks to keep it safe, many banks close down and due to this people’s money gets stuck.
If a bank closes down, then this thought comes to people’s mind. People who have accounts in the bank that is closing down, will their money also get stuck with the closure of the bank? Or is there any way to claim it?
So let us tell you that if the operations of a bank stop i.e. it is closed by RBI. Then a process is set to get back the money deposited by the account holders of that bank. Under which their money is returned.
For this, the process of returning money to the people is done under the DICGC Act i.e. Deposit Insurance and Credit Guarantee Corporation Act. But in this, the depositors can get their money back only up to a limit.
Under the DICGC Act, the depositors of the bank will be able to get back only up to Rs. 5 lakhs. This means that if a bank closes down, then up to Rs. 5 lakhs of any customer present in it remains safe. This is guaranteed to be returned.
Under Section 16 (1) of the DICGC Act, 1961, if a bank closes down for any reason, then the DICGC is responsible for returning the money to every depositor. Depositors get insurance up to Rs 5 lakh on their deposits.
After the bank closes, you must immediately contact your bank branch. After this, you can find out about the claim process from there. You can also know which documents will be required. If your deposit amount is more than Rs 5 lakh, then you will have to participate in the liquidation process.
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