Enforcement Action Taken against 41 Entities, Rs 61.15 Crore Fine Imposed, Says RBI

With regard to cooperative banks, it said 13 penal actions were taken with imposition of Rs 9.18 crore, it said. During the period, it said, a total fine of Rs 5 crore were imposed on two foreign banks. With regard to Deposit Insurance and Credit Guarantee Corporation (DICGC), it said it plays an important role in maintaining the stability of the financial system, particularly in assuring the protection of interests of small depositors and, thereby, ensuring public confidence. DICGC is a wholly-owned subsidiary of the RBI constituted under the DICGC Act, 1961. The deposit insurance extended by DICGC covers all commercial banks. “The number of registered insured banks as on March 31, 2020, stood at 2,067 comprising 144 commercial banks (including 45 regional rural banks, 3 local area banks, 6 payment banks and 10 small finance banks) and 1,923 co-operative banks (33 StCBs, 352 DCCBs and 1,538 UCBs),” it said.

The DICGC raised the limit of insurance cover for depositors in banks to Rs 5 lakh per depositor with effect from February 4, 2020, from the earlier level of Rs 1 lakh with a view to providing a greater measure of protection to depositors in banks, it said. The premium was also raised to 12 paise from 10 paise per Rs 100 of assessable deposits per annum from the half year beginning April 1, 2020, in order to maintain an adequate level of the deposit insurance fund, it said. With the current limit of deposit insurance in India at Rs 5 lakh, it said the number of fully protected accounts (231 crore) as at end-March 2020 constituted 98.3 per cent of the total number of accounts (235 crore) as against the international benchmark of 80 per cent..

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