October 09, 2011 – New Delhi, 8 cooperative banks failed in this fiscal so far, resulting in credit insurance company DICGC paying a little over Rs 143 crore to depositors.
Out of the eight cooperative banks, which failed to repay deposits to customers, four are from Maharashtra, three from Karnataka and one from Gujarat.
Under the norms of Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), a maximum of Rs 1 lakh is paid to a depositor in case a bank goes insolvent. The DICGC paid the maximum amount of Rs 48.7 crore to Ichalkaranji Cooperative Bank of Maharashtra. This was followed by another Maharashtra-based lender Samata Sahakari Bank, whose depositors were paid Rs 38.83 crore.
In the last financial year, 26 cooperative banks had closed operations.
(Source – Press Trust of India)