Punjab and Maharashtra Cooperative Bank crisis has led to chaos among the common public who keep their life-time savings in their bank accounts. Following some major irregularities in NPAs, RBI has obstructed PMC bank from doing any business and had put severe restrictions over withdrawal for PMC Bank account holders for the next six months.
Recently, an image of a person’s HDFC passbook is doing rounds on social media because the bank has put a stamp on passbook informing about the ‘deposit insurance cover’ of 1 lakh. The stamp says, “The deposits of the banks are insured with DICGC and in case of liquidation of the bank, DICGC is liable to pay each depositor through the liquidator. The amount of his deposit up to rupees one lakh within two months from the date of claim list from the liquidator.”
A Twitter user name Manish shared this image with a caption, “HDFC BANK Using Stamp on Passbook and declaring they are not liable to take the responsibility over one Lakh....that means savings upto *ONE LAKH ONLY is safe in Private Banks* Via Whatsapp. Any fact-checkers?”
He also tagged us to verify the authenticity of the picture.
Many people on social media have also raised similar concerns. It seems like people are not aware of RBI’s DICGC that was formed in 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The DICGC provides a ‘deposit insurance cover’ in case of liquidation of a Bank, which at present, provides a cover of Rs 1 lakh.
To ease out the fretting situation among the public, HDFC bank’s twitter account, to clarify, commented on the post. The post informs that according to an RBI circular, all Scheduled Commercial Banks, all small finance banks and Payment banks are required to incorporate ‘deposit insurance cover’ along with its limit.
Here is the full clarification by HDFC Bank:
Neeraj Jha, the head of Corporate Communication of HDFC bank also put out a clarification in this regard.
People are saying that such information suddenly, amidst the PMC bank crisis, is leading to panic among people. Many people can be seen sharing messages that everyone should withdraw their savings from a bank account as in times of liquidation they will only get Rs 1 lakh.
We would like to inform everyone that people shouldn’t fall prey to such messages if they have accounts in major banks like HDFC, ICICI or SBI, as these banks are too huge to liquidate so easily.
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