4.After section 18 of the principal Act, the following section shall be inserted,
•namely:—
•"18A.(1) Where, in respect of an insured bank,—
(i)any direction is issued or any prohibition or order or scheme is made
•under any of the provisions of the Banking Regulation Act, 1949; and
•(ii) such direction, prohibition, order or scheme provides for restrictions
•on depositors of such bank from accessing their deposits,
•then, without prejudice to the provisions of sections 16 to 18, the Corporation shall, on
•the date on which such direction, prohibition, order or scheme takes effect, become liable to
•pay to every such depositor an amount equivalent to the amount payable by the Corporation
•to the depositor under section 16.
(2)A list showing the outstanding deposits of each depositor of the insured
•bank, as on the date on which the direction, prohibition, order or scheme referred to in
•sub-section (1) takes effect, shall be furnished by such insured bank within forty-five
•days of such date of effect, in such form and manner as may be specified by the
•Corporation and certified to be correct by the chief executive officer of the insured
bank.
(3)The Corporation shall, within thirty days of the date of receipt of the list
•under sub-section (2), verify, through an online platform, to the extent possible, or in
•accordance with such procedure, as may be prescribed, the genuineness and
•authenticity of the claims made therein, and ascertain the willingness of each depositor
•to receive the amount due to him out of his deposit in the insured bank.
•Amendment
•of section 2.
•Amendment
•of section 15.
•Insertion of
•new section
18A.
•Liability of
•Corporation
•to make
•interim
•payment to
•depositors of
•insured bank.
•10 of 1949.
•47 of 1961.
•5
•10
•15
•20
•25
•30
•35
•45
•40
•3
(4)Subject to the provisions of sub-section (7), the Corporation shall, before the
•expiry of fifteen days from the date of completion of the verification under sub-section
(3), pay to the depositors who have affirmed their willingness thereunder, the amount
•payable under sub-section (1) either directly, or get it credited in the account of the
•depositors through the insured bank:
•Provided that the total period of time between the date when the Corporation
•becomes liable to pay to the depositor and the date of payment to the depositor shall
•not, subject to the provisions of sub-section ( 7), exceed ninety days:
•Provided further that any amount paid by the insured bank to the depositor
•during the period between the date on which the direction, prohibition, order or scheme
•referred to in sub-section ( 1) takes effect and the date of payment to the depositor,
•shall be appropriately reckoned by the insured bank before crediting such amount in
•depositor's account.
(5)Any amount paid by the Corporation under sub-section ( 4) in respect of a
•deposit shall, to the extent of the amount so paid, discharge the insured bank from its
•liability to the depositor in respect of that deposit, but the insured bank shall become
•liable to the Corporation in respect of the amount paid by the Corporation.
(6)Where, in respect of an insured bank,—
(i)any direction, prohibition, order or scheme under any of the provisions
•of the Banking Regulation Act, 1949 providing for suspension of business of the
•insured bank is already in force as on the date of commencement of the Deposit
•Insurance and Credit Guarantee Corporation (Amendment) Act, 2021; and
•(ii) such direction, prohibition, order or scheme provides for restrictions
•on the amounts to be paid by the insured bank to each of its depositors,
•then, notwithstanding anything contained in any other law for the time being in force,
•the Corporation shall, on and from the date of commencement of the Deposit Insurance and
•Credit Guarantee Corporation (Amendment) Act, 2021, become liable to pay to each depositor
•of such insured bank, an amount equivalent to the amount payable by the Corporation to the
•depositor under sub-section (1) of section 16, and the time limit specified in sub-sections (2)
•to (4) herein for such payment shall be computed from that date.
(7)Notwithstanding anything contained in sub-sections ( 1) to ( 6), in cases
•where,—
(a)the Reserve Bank finds it expedient in the interest of finalising a scheme
•of amalgamation of the insured bank with other banking institution or a scheme
•of compromise or arrangement or of reconstruction in respect of such insured
•bank, and communicates to the Corporation accordingly, the date on which the
•Corporation shall become liable to pay every depositor of such insured bank
•may further be extended by a period not exceeding ninety days;
(b)the restrictions on payment to depositors are removed by the Reserve
•Bank at any time before payment to depositors by the Corporation under
•sub-section (4), and the insured bank or the transferee bank is in a position to make
•payments to its depositors on demand without any restrictions, the Corporation
•shall not be liable to make payment to the depositors of such insured bank.
