DICGC
Depositors of New India Co-operative Bank stage protest over delay in fund access
Depositors of the scam-hit New India Co-operative Bank protested in Thane, Maharashtra, demanding swift action for the bank's revival or merger. They submitted a memorandum outlining concerns about deposit safety and sought increased withdrawal limits. Frustrated by the lack of clarity, depositors warned of escalating protests if their demands for resolution and transparency are not addressed promptly.
From liquid funds to sweep-in FDs, here are a few short-term options for you to invest your money in
With bank savings account interest rates declining, depositors are exploring alternatives for better returns. Options include switching to banks with higher rates, sweep-in fixed deposits, and mutual fund options like liquid and overnight funds. However, experts advise prioritizing safety and liquidity, suggesting a mix-and-match approach to optimize returns while minimizing risk.
Up to 9.1% interest rate on FDs in these banks for senior citizens on 3-year investment tenure, check the full list here
Bank FD: Senior citizens can get up to 9.1% interest rate in banks for three years tenure. Moreover, if a senior citizen has income up to Rs 12 lakh in a year under the new tax regime, then he/she can submit Form 15H and prevent TDS deduction from FD interest rate also. Read below to get the full list of the banks offering up to 9.1% interest on FD.
RBI cancels licence of Jalandhar-based Imperial Urban Co-op Bank
The Reserve Bank of India (RBI) has revoked the license of Jalandhar's Imperial Urban Co-operative Bank due to insufficient capital and poor earning potential. The Registrar of Cooperative Societies in Punjab has been asked to liquidate the bank. Depositors will receive insurance up to ₹5 lakh from DICGC, with 97.79% eligible for full repayment.
RBI cancels licence of Aurangabad-based Ajantha Urban Co-op Bank Maryadit
The Reserve Bank of India (RBI) has revoked the license of Ajantha Urban Co-operative Bank Maryadit, Aurangabad, effective April 22, 2025, due to inadequate capital and poor earning prospects. The Registrar of Cooperative Societies, Maharashtra, has been asked to liquidate the bank. Depositors will receive up to ₹5 lakh from DICGC, with 91.55% getting their full deposit amount.
Book your FD before it’s too late: These banks offer interest rates up to 9.10% for senior citizens
Following the RBI's recent repo rate cut, major banks like SBI and HDFC Bank have reduced their fixed deposit (FD) interest rates, impacting returns for conservative investors, especially senior citizens. However, some small finance are still offering attractive FD rates, up to 9.10% for seniors.
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FD investors: Book your fixed deposits at higher interest rates now before they come down further
RBI repo rate cut by 25 bps: The RBI Governor has announced the 2nd rate cut in the repo rate. The two successive rate cuts will bring down the fixed deposit interest rates. The FD investors, especially the senior citizens, should act now to your book fixed deposits at higher interest rate before they lose the opportunity.
FD interest rate up to 8.6% for general citizens for 5 year tenure; Invest now to save income tax for FY 2024-25
Fixed deposit: There are banks who are offering up to 8.6% interest rate on fixed deposits (FD) worth less than Rs 3 crore for general citizens for five year tenure. If you are under the old tax regime then you can choose to invest in such FD and get Section 80C tax deduction of up to Rs 1.5 lakh in FY 2024-25.
Alternative Investments in India: What’s driving the demand beyond stocks and mutual funds?
As the Indian stock market faces volatility, investors are shifting towards alternative investments like Small Finance Bank FDs, corporate bonds, gold, real estate, and unlisted stocks to diversify and manage risk. A balanced asset allocation strategy is crucial, with varying approaches for low, moderate, and high-risk investors, helping them navigate market fluctuations and ensure steady growth.
Are all your bank deposits insured if your bank fails? Can you get insurance for bank deposits above Rs 5 lakh?
Recent developments at the IndusInd Bank have left depositors concerned about the safety of their money. The RBI has assured that deposits are not at risk and small depositors are protected under its deposit insurance scheme operated by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Yasmin Hussain explores the working of the scheme.
Tax-saving FD interest rate up to 8%: Check banks offering highest interest rate to senior citizens on tax-saving FDs
Tax-saving FDs provide tax deductions under Section 80C with a five-year lock-in period. These deposits offer stable returns and additional interest for senior citizens. While the principal amount is tax-deductible, the interest earned is taxable. Here are banks offering 7.50% and above on tax saving FDs for senior citizen
FD interest rate up to 9%: Check highest interest rate and one-year interest rate of fixed deposits of these banks
Many small finance banks are offering attractive fixed deposit interest rates, with Unity Small Finance Bank and NorthEast Small Finance Bank providing the highest at 9% for specific tenures. The table lists various banks and their respective rates.
NSC vs bank FDs: Which is a better tax saving option?
NSC and tax-saving FDs both offer tax benefits and assured returns with a 5-year lock-in. NSC provides higher interest rates and tax advantages on reinvested interest.
Hike in deposit insurance limit beyond Rs 5 lakh to impact banks' profits: Icra
The government is considering raising the deposit insurance limit above Rs 5 lakh, which will impact banks' profitability. This potential hike, driven by recent bank failures, could affect banks' profits by Rs 1,800-12,000 crore annually and reduce return on assets and equity.
Govt considering raising deposit insurance limit above current Rs 5 lakh: Official
The government is considering increasing the deposit insurance limit beyond Rs 5 lakh, following the New India Co-operative Bank scam. This proposal is being actively reviewed, with a final decision pending. The scam revealed a Rs 122 crore shortfall due to embezzlement. The RBI is handling the situation, emphasising the cooperative banking sector's overall strength despite isolated incidents.
Another bank in trouble: Depositors of New India Co-operative Bank can not withdraw their deposits; what lies ahead for them
New India Co-operative Bank: Considering the bank's present liquidity position, the bank has been directed not to allow withdrawal of any amount from savings bank or current accounts or any other account of a depositor but is allowed to set off loans against deposits. Can Deposit Insurance and Credit Guarantee Corporation (DICGC) help?
RBI issues notice to New India Co-operative Bank, Mumbai, to hold all financial operations
The Reserve Bank of India has issued a notice to New India Co-operative Bank Limited, Mumbai, halting all financial operations without prior RBI approval. Effective February 13, 2025, the bank is restricted from granting loans, renewing advances, making investments or disbursing payments. These measures are to ensure financial stability and compliance with RBI directives.
DICGC introduces Daava Soochak for depositors to track claim status
The Deposit Insurance and Credit Guarantee Corporation (DICGC) has introduced Daava Soochak, an online tool for depositors to track their claim status. This tool allows users to check claims by entering their registered mobile number. The initiative is part of DICGC's efforts to enhance services for depositors of failed banks.
DICGC needs more resources
The Deposit Insurance and Credit Guarantee Corporation (DICGC) needs to increase its reserve ratio, manage treasury proactively, and upgrade its digital infrastructure to meet future payment obligations, as per a research paper in the RBI bulletin.
DICGC asks banks to display its logo, QR code on their websites
"With a view to enhance the awareness about deposit insurance in a focused and sustained manner and in consultation with the RBI, it has been decided that all banks registered with DICGC shall henceforth display the logo of DICGC and QR code linked to the DICGC website prominently on their website and internet banking portal," the circular said.
DICGC likely made large purchases at debt auction
The Deposit Insurance and Credit Guarantee Corp (DICGC) is suspected to have made substantial purchases at a primary debt auction on Friday, say participants in the Indian government bond market. While the national reserve bank sold 140 billion rupees of the 7.26% 2033 bond and 80 billion rupees of the 7.06% 2028 bonds, some participants suspect DICGC may have bought bonds worth between 30 billion and 50 billion rupees. A senior treasury official at a state-run bank said DICGC typically invests its May funds into the government securities market in June.
DICGC settles claims worth Rs 8,516.6 crore in FY22
Deposit Insurance and Credit Guarantee Corporation settled claims amounting to Rs 8,516.6 crore during 2021-22 of about 12.94 lakh depositors of liquidated banks, merged entities and those placed under restrictions by the Reserve Bank.
RBI's deposit insurance arm to pay depositors of two co-operative banks in August
Eligible depositors of Shankarrao Pujari Nutan Sahakari Bank will get the payment on August 10, and those of Harihareshwar Sahakari Bank on August 28, according to a DICGC circular.The Reserve Bank of India (RBI) had imposed several restrictions, including on withdrawals by depositors, on these two banks in May in the wake of their deteriorating financial positions.
Depositors of Lucknow cooperative bank to get money from DICGC on April 27
Depositors of Beed-based Dwarakadas Mantri Nagari Sahakari Bank will get payments on June 6. DICGC, a wholly-owned subsidiary of the RBI, provides an insurance cover of up to Rs 5 lakh on bank deposits. As per the corporation, the amount of assessable deposits stood at Rs 1,49,67,770 crore at end-March 2022.
Depositors of 21 failed cooperative banks including PMC to get deposit insurance cover
Banks have been asked to submit claims latest by October 15 and update the position as on November 29, 2021 along with principal and interest, in a final updated list, to enable DICGC settle the claim and discharge its insurance liability.
Bill cleared to allow bank depositors to get up to Rs 5 lakh refund within 90 days under DICGC insurance
During a debate regarding the DICGC bill in the Rajya Sabha, it was clarified by the finance minister that PMC Bank depositors will also get benefit of this amendment.
5 things to know about deposit insurance
DICGC covers depositors of all commercial banks and foreign banks operating in India, state, central and urban co-operative banks, local area banks and regional rural banks provided the bank has bought the cover from DICGC.
DICGC faces a claim of Rs 14,000 crore from co-operative banks including PMC: RBI
The extent of devolvement on DICGC in the event of all the banks ‘under direction’ or weak banks going into liquidation/ordered to be wound up, would be Rs 14098 crore as of end September, 2019, RBI said. The break-up would be Rs 3,414 crore in the case of state cooperative banks, district central cooperative banks and ₹10,684 crore in the case of UCBs including PMC Bank.
13 cooperative banks go belly up in 2012-13
As many as 13 cooperative banks failed in 2012-13, resulting in credit insurance company DICGC paying nearly Rs 160 crore to depositors.
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