During the years preceding April 2007, the joint accounts (AB & BA) in a bank under liquidation were being aggregated as one account held “in the same capacity and in the same right” and the claim amount was settled by the DICGC subject to the limit (` 1 lakh) as prescribed in Section 16(1) of the DICGC Act, 1961. DICGC had issued revised guidelines with effect from April 26, 2007, in terms of which such joint accounts of different combination i.e.  A & B and B & A were to be treated as accounts held in “different capacity and different right” and the claim amounts in respect of these joint accounts were to be settled treating each such joint account as a separate account.

The  benefit of the revised guidelines  were subsequently  extended to banks which had been taken up for liquidation prior to April 26, 2007 (hereinafter referred to as ‘the said date’)  and the Corporation has been settling the additional claims submitted by the liquidators in the form of supplementary claims arising on account of these  revised guidelines from time to time.

Almost five years have passed and it is presumed that as of now, liquidators would have submitted the supplementary claims in respect of all the eligible joint account holders in banks under liquidation prior to the said date and the eligible claim amounts in terms of the revised instructions have been settled by the Corporation.

The guidelines have accordingly been reviewed and  it has now been decided that  the liquidators would be allowed to submit the Supplementary Claims in respect of joint accounts held on AB/BA basis in co-operative banks taken up for liquidation prior to the said date  only up to the end of this financial year i.e. up to March 31, 2013.  Liquidators of all the insured cooperative banks taken up for liquidation prior to the said date  have been advised by the Corporation to ensure that any Supplementary claims still pending are submitted on or before March 31, 2013. No supplementary claims in respect of such accounts, submitted by them after March 31, 2013 would thereafter be considered by the Corporation.

The benefit of the revised guidelines dated April 26, 2007 in respect of insured cooperative banks which have been liquidated prior to April 26, 2007 shall stand withdrawn and cease to have effect from March 31, 2013.

R. R. Sinha
Deputy General Manager

Press Release : 2011-2012/1813