Page 18 - Banking Finance February 2022

CO-OPERATIVE BANK NEWS

ment for its sanction and the Centre tended their cooperation to unani- sinking, the depositors will get their
may sanction the scheme without any mously elect him as the chairman. money back within 90 days", he added.
modifications or with such modifica- The Prime Minister also said that banks
tions as it may consider necessary. Security guarantee for in- play a major role in the prosperity of the
The scheme as sanctioned by the gov- vestors in cooperative sec- country. And for the prosperity of the
ernment would come into force on banks, it is equally important for the
such date as they may specify, as per tor to be hiked to Rs 5 depositors' money to be safe. "If we
the Act. lakh want to save the bank, then depositors
The Reserve Bank of India (RBI) had Addressing a function on "Depositors have to be protected," he said.
prepared a draft scheme of amalgam- First: Guaranteed Time-bound Deposit Deposit insurance covers all deposits
ation and the same was placed in the Insurance Payment up to Rs. 5 Lakh", such as savings, fixed, current, recur-
public domain on November 22 as part PM Modi said today is a very impor- ring deposits, etc. in all commercial
of seeking suggestions and objections, tant day for the banking sector and banks, functioning in India. Deposits in
if any, from members, depositors and crores of bank account holders of the State, Central and Primary cooperative
other creditors of PMC Bank and Delhi- country as this day is witnessing how a banks, functioning in States/Union Ter-
based USFB. The deadline for submit- big problem which was going on for ritories are also covered. In a path-
ting the comments was till December decades has been solved. breaking reform, Bank deposit insur-
10. ance cover was enhanced from Rs. 1
PM Modi further said that the system
of insurance for bank depositors came lakh to Rs. 5 lakh.
Bhoja Reddy is new into being in the 60s in India. Earlier, out According to a statement by PMO,

Adilabad DCCB chairman of the amount deposited in the bank, with deposit insurance coverage of Rs.
Addi Bhoja Reddy has been unani- only the amount up to Rs 50,000 was 5 lakh per depositor per bank, the num-
mously elected as the chairman of guaranteed. Then it was raised to Rs 1 ber of fully protected accounts at end
Adilabad District Central Cooperative lakh. That is, if the bank sank, then the of previous financial year constituted
Bank.The sudden demise of the chair- depositors had a provision to get only 98.1% of the total number of accounts,
up to Rs 1 lakh. There was no time limit as against the international benchmark
man Kamble Namdev in July last neces-
sitated the election. on when this money would be paid. of 80%.
Speaking on the occasion, Bhoja Reddy "Understanding the concern of the The first tranche of interim payments
stated that he would strive hard for poor, understanding the concern of the has been released by the Deposit Insur-
growth of the bank and strengthening middle class, we increased this amount ance and Credit Guarantee Corporation
cooperative societies. He expressed to Rs 5 lakh", PM Modi said. recently, against claims received from
gratitude to Forest Minister Allola Another problem was tackled by depositors of 16 Urban Cooperative
Indrakaran Reddy and Adilabad MLA amending the law. "Earlier where Banks which are under restrictions by
Jogu Ramanna, legislators Rathod there was no time limit for refund, RBI. Payout of over Rs 1300 crore has
Bapu Rao and Koneru Konappa. He now our government has made it man- been made to alternate bank accounts
thanked directors of Primary Agricul- datory within 90 days i.e. 3 months. of over 1 lakh depositors against their
ture Cooperative societies who ex- That is, even in the event of a bank claims, the statement said.

Govt asks telcos to store call data, internet usage record for 2 years
Department of Telecom (DoT) has extended the duration of archiving call data and internet usage records of subscrib-
ers to two years from one year due to security reasons. The amendments in the licences were issued on December 21
and extended to other forms of telecom permits on December 22.
"The licensee shall maintain all commercial records/call detail record/exchange detail record/IP detail record with
record to the communications exchanged on the network. Such records shall be archived for at least two years for
scrutiny by the licensor for security reasons...," the DoT circular said. Telecom companies may destroy the data stored
thereafter if there is no direction from the DoT thereafter.

18 | 2022 | FEBRUARY | BANKING FINANCE