The Reserve Bank of India imposed restrictions on Shirpur Merchants’ Co-operative Bank, akin to previous actions on PMC Bank and YES Bank, affecting customers’ fund withdrawals for six months. Here’s what customers need to know:
Deposit Insurance: DICGC Act ensures insurance coverage up to Rs 5 lakh per depositor, covering principal and interest across all accounts in the same bank.Receiving Funds:90-Day Refund: Deposits up to Rs 5 lakh are refunded within 90 days from the start of the moratorium, prioritizing insured depositors before other creditors in the liquidation process.
Understanding Deposit Insurance: What Happens When Banks Fail
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