10. Registration of existing banking companies.—The Corporation shall register every existing
banking company as an insured bank before the expiry of thirty days from the date of commencement of
this Act.
11. Registration of new banking companies.—The Corporation shall register every new banking
company as an insured bank as soon as may be after it is granted a licence under section 22 of the
3
[Banking Regulation Act, 1949 (10 of 1949)], 4***
5
[11A. Registration of Regional Rural Banks.—The Corporation shall register every Regional
Rural Bank, before the expiry of thirty days from the date of its establishment.]
12. Registration of defunct banking companies.—Every banking company being a defunct banking
company at the commencement of this Act, by reason of sub-clause (vii) or sub-clause (viii) of clause (f)
of section 2 shall, unless it becomes a defunct banking company under any other sub-clause of that clause,
1. Ins. by Act 1 of 1984, s. 58 (w.e.f. 15-2-1984).
2. Ins. by Act 56 of 1968, s. 6 (w.e.f. 1-7-1971).
3. Subs. by s. 2, ibid., for “the Banking Companies Act, 1949” (w.e.f. 1-7-1971).
4. The words and figures “, or, as the case may be, after it is notified under section 51 of the said Act” omitted by Act 1 of 1984, s. 59 (w.e.f. 15-
2-1984).
5. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
10
be registered by the Corporation as an insured bank as soon as may be after the termination of the order
moratorium or, as the case may be, the rejection of the application for its winding up.
13. Cancellation of registration.—1
[(1)] The registration of a banking company as an insured bank
shall stand cancelled on the occurrence of any of the following events, namely:—
(a) if it has been prohibited from receiving fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been
cancelled under section 22 of 2
[the Banking Regulation Act, 1949 (10 of 1949)] or that a licence
under that section cannot be granted to it; or
(c) if it has been ordered to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a banking company within the meaning of sub-section (2) of section 36A
of 2
[the Banking Regulation Act, 1949 (10 of 1949)] or has converted itself into a non-banking
company; or
(f) if a liquidator has been appointed in pursuance of a resolution for the voluntary winding up of
its affairs; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been
sanctioned by any competent authority and the said scheme does not permit the acceptance of fresh
deposits; or
(h) if it has amalgamated with any other banking institution.
3
[(2) The provisions of clauses (a), 4*** (c), (d) and (h) of sub-section (1) shall apply to a
corresponding new bank as they apply to a banking company.]
5
[(3) The provisions of clauses (a), 4*** (c), (d) and (h) of sub-section (1) shall apply to a Regional
Rural Bank as they apply to a banking company.]
6
[13A. Registration of co-operative banks.—(1) No co-operative bank shall be registered under this
section unless it is an eligible co-operative bank.
(2) Subject as aforesaid—
(a) the Corporation shall register every existing co-operative bank as an insured bank before the
expiry of thirty days next following the commencement of the Deposit Insurance Corporation
(Amendment) Act, 1968 (56 of 1968);
(b) the Corporation shall register as an insured bank—
(i) every new co-operative bank [other than a primary credit society becoming a primary
co-operative bank after the commencement of the Deposit Insurance Corporation (Amendment)
Act, 1968 (56 of 1968)] as soon as may be after it is granted a licence under section 22 of the
Banking Regulation Act, 1949 (10 of 1949);
(ii) a primary credit society becoming a primary co-operative bank after such commencement
within three months of its having made an application for a licence under the said section:
Provided that a bank referred to in clause (b) shall not be so registered if it has been informed by
notice in writing by the Reserve Bank that such a licence cannot be granted to it.
7
[(iii) every co-operative bank which has come into existence after the commencement of the
Deposit Insurance Corporation (Amendment) Act, 1968 (56 of 1968), as a result of the division of
any other co-operative society carrying on business as a co-operative bank, or the amalgamation
1. Section 13 re-numbered as sub-section (1) thereof by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).
2. Subs. by Act 56 of 1968, s. 2, for “the Banking Companies Act, 1949” (w.e.f. 1-7-1971).
3. Ins. by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).
4. The brackets and letter “(b),” omitted by 1 of 1984, s. 60 (w.e.f. 15-2-1984).
5. Ins. by Act 21 of 1976, s. 33 (w.e.f. 26-9-1975).
6. Ins. by Act 56 of 1968, s. 7 (w.e.f. 1-7-1971).
7. Ins. by Act 1 of 1984, s. 61 (w.e.f. 15-2-1984).
11
of two or more co-operative societies carrying on banking business, at the commencement of the
Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), or at any time
thereafter, within three months of its having made an application for a licence under the said
section;]
13B. Registration of defunct co-operative banks.—Every co-operative bank being a defunct
co-operative bank at the commencement of the Deposit Insurance Corporation (Amendment) Act, 1968
(56 of 1968), by reason of sub-clause (vii) or Sub-clause (viii) of clause (ff) of section 2 shall, unless it
becomes a defunct co-operative bank under any other sub-clause of that clause, be registered by the
Corporation as an insured bank as soon as may be after the termination of the order of moratorium, or as
the case may be, the rejection or dismissal of the application for its winding up provided it is an eligible
co-operative bank and it either holds a licence granted under section 22 of the Banking Regulation
Act, 1949 (10 of 1949), or having applied for such licence in accordance with that section, has not been
informed by notice in writing by the Reserve Bank that a licence cannot be granted to it.
13C. Cancellation of registration of co-operative banks.—The registration of a co-operative bank
as an insured bank shall stand cancelled on the occurrence of any of the following events, namely:—
(a) if it has been prohibited from accepting fresh deposits; or
(b) if it has been informed by notice in writing by the Reserve Bank that its licence has been
cancelled under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or a licence under that
section cannot be granted to it; or
(c) if it has been ordered or directed to be wound up; or
(d) if it has transferred all its deposit liabilities in India to any other institution; or
(e) if it has ceased to be a co-operative bank within the meaning of sub-section (2) of section 36A
of the Banking Regulation Act, 1949 (10 of 1949); or
(f) if it has converted itself into a non-banking co-operative society; or
(g) if in respect of it any scheme of compromise or arrangement or of reconstruction has been
sanctioned by a competent authority and the said scheme does not permit the acceptance by it of fresh
deposits; or
(h) if it has been amalgamated with any other co-operative society; or
(i) if it ceases to be an eligible co-operative bank, that is, if the law for the time being governing
such co-operative bank does not provide for all or any of the matters referred to in clause (gg) of
section 2.
13D. Circumstances in which Reserve Bank may require winding up of co-operative
banks.—(1) The circumstances referred to in sub-clause (ii) of clause (gg) of section 2 (being
circumstances in which the Reserve Bank may require the winding up of a co-operative bank) are the
following, namely:—
(a) that the co-operative bank has failed to comply with the requirements specified in section 11
of the Banking Regulation Act, 1949 (10 of 1949); or
(b) that the co-operative bank has by reason of the provisions of section 22 of the said Act
become disentitled to carry on banking business in India; or
(c) that the co-operative bank has been prohibited from receiving fresh deposits by an order under
sub-section (4) of section 35 of the said Act or under clause (b) of sub-section (3A) of section 42 of
the Reserve Bank of India Act, 1934 (2 of 1934); or
(d) that the co-operative bank having failed to comply with any requirement of the Banking
Regulation Act, 1949 (10 of 1949), other than the requirements laid down in section 11 thereof, has
12
continued such failure or, having contravened any provision of that Act has continued such
contravention beyond such period or periods as may be specified in that behalf by the Reserve Bank
from time to time, after notice in writing of such failure or contravention has been conveyed to the
co-operative bank; or
(e) that the co-operative bank is unable to pay its debts; or
(f) that in the opinion of the Reserve Bank—
(i) a compromise or arrangement sanctioned by a competent authority in respect of the
co-operative bank cannot be worked satisfactorily with or without modifications, or
(ii) the continuance of the co-operative bank is prejudicial to the interests of its depositors.
(2) Without prejudice to the provisions of any other law for the time being in force, a co-operative
bank shall, for the purpose of clause (e) of sub-section (1), be deemed to be unable to pay its debts:—
(i) if, on the basis of the returns, statements or information furnished to the Reserve Bank under
or in pursuance of the provisions of the Banking Regulation Act, 1949 (10 of 1949), the Reserve
Bank is of opinion that the co-operative bank is unable to pay its debts; or
(ii) if the co-operative bank has refused to meet any lawful demand made at any of its offices or
branches within two working days, if such demand is made at a place where there is an office, branch
or agency of the Reserve Bank, or within five working days if such demand is made elsewhere and, in
either case, the Reserve Bank Certifies in writing that the co-operative bank is unable to pay its
debts.]
14. Intimation of registration.—(1) Where the Corporation has registered any 1
[ 2
[banking
company, Regional Rural Bank] or co-operative bank] as an insured bank, it shall, within thirty days of its
registration, send an intimation in writing to the 1
[
2
[banking company, Regional Rural Bank] or
co-operative bank] that it has been registered as an insured bank.
(2) Every such intimation shall indicate the manner in which the premium payable by the bank under
section 15 may be calculated.
15. Premium.—(1) Every insured bank shall, so long as it continues to be registered, be liable to pay
a premium to the Corporation on its deposits at such rate or rates as may 3
[with the previous approval of
the Reserve Bank, be notified by the Corporation, from time to time, to the insured banks and different
rates may be notified for different categories of insured banks:]
Provided that the premium payable by any insured bank for any period shall not exceed fifteen paisa
per annum for every hundred rupees of the total amount of the deposits in that bank at the end of that
period or, where its registration has been cancelled during that period, on the date of its cancellation:
4
[Provided further that the Corporation may, having regard to its financial position and to the interests
of the banking system of the country as a whole, and with previous approval of the Reserve Bank of
India, from time to time, raise the aforesaid limit of fifteen paisa per annum for every hundred rupees of
the total amount of the deposits in that bank:
Provided also that] where the registration of any insured bank is cancelled under section 13 5
[or under
section 13C] such cancellation shall not affect the liability of that bank for payment of premium for the
period before such cancellation and of any interest due under the provisions of this section.
(2) The premium shall be payable for such periods, at such times and in such manner as may be
prescribed.
(3) If an insured bank makes any default in payment of any amount of premium, it shall, for the
period of such default, be liable to pay to the Corporation interest on such amount at such rate 6
[not
exceeding eight per cent. over and above the bank rate as may be prescribed].
1. Subs. by Act 56 of 1968, s. 8, for “banking company” (w.e.f. 1-7-1971).
2. Subs. by Act 21 of 1976, s. 33, for “banking company” (w.e.f. 26-9-1975).
3. Subs. by Act 21 of 1978, s. 8, for certain words (w.e.f. 15-7-1978).
4. Subs. by Act 30 of 2021, s. 3, for “Provided further that” (w.e.f. 1-9-2021).
5. Ins. by Act 56 of 1968, s. 9 (w.e.f. 1-7-1971).
6. Subs. by Act 21 of 1978, s. 8, for “not exceeding eight per cent. per annum as may be prescribed” (w.e.f. 15-7-1978).
13
1
[15A. Cancellation of registration of an insured bank for non-payment of premium.—(1) The
Corporation may cancel the registration of an insured bank if it fails to pay the premium for three
consecutive periods:
Provided that no such registration shall be cancelled except after giving to the concerned bank one
month's notice in writing calling upon that bank to pay the amount in default.
(2) The Corporation may restore the registration of a bank whose registration has been cancelled
under sub-section (1), if the concerned bank requests the Corporation to restore the registration and pays
all the amounts due by way of premia from the date of default till the date of payment together with
interest due thereon on the date of payment:
Provided that the Corporation shall not restore the registration unless it is satisfied, on an inspection
of the concerned bank or otherwise, that it is eligible to be registered as an insured bank.]
16. Liability of corporation in respect of insured deposits.—(1) Where an order for the winding up
or liquidation of an insured bank is made, the Corporation shall, subject to the other provisions of this
Act, be liable to pay to every depositor of that bank in accordance with the provisions of section 17 an
amount equal to the amount due to him in respect of his deposit in that bank at the time when such order
is made:
Provided that the liability of the corporation in respect of an insured bank referred to in clause (a) or
clause (b)
2
[of sub-section (1) of section 13] 3
[or clause (a) or clause (b) of section 13C] shall be limited
to the deposits as on the date of the cancellation of the registration:
Provided further that the total amount payable by the Corporation to any one depositer in respect of
his deposit in that bank in the same capacity and in the same right shall not exceed one thousand and five
hundred rupees:
Provided further that the Corporation may, from time to time, having regard to its financial position
and to the interests of the banking system of the country as a whole, raise, with the previous approval of
the Central Government, the aforesaid limit of one thousand and five hundred rupees.
(2) Where in respect of an insured bank a scheme of compromise or arrangement or of reconstruction
or amalgamation has been sanctioned by any competent authority and the said scheme provides for each
depositor being paid or credited with, on the date on which the scheme comes into force, an amount
which is less than the original amount and also the specified amount, the Corporation shall be liable to
pay every such depositor in accordance with, the provisions of section 18 an amount equivalent to the
difference between the amount so paid or credited and the original amount, or the difference between the
amount so paid or credited and the specified amount, whichever is less:
Provided that where any such scheme also provides that any payment made to a depositor before the
coming into force of the scheme shall be reckoned towards the payment due to him under that scheme,
then the scheme shall be deemed to have provided for that payment being made on the date of its coming
into force.
(3) For the purposes of this section, the amount of a deposit shall be determined after deducting
therefrom any ascertained sum of money which the insured banks may be legally entitled to claim by way
of set off against the depositor in the same capacity and in the same right.
(4) In this section,—
(a) “original amount” in relation to a depositor means the total amount due by the insured bank
immediately before the date of coming into force of the scheme of compromise or arrangement or, as
the case may be, of reconstruction or amalgamation to the depositor in respect of his deposit in the
bank in the same capacity and in the same right:
1. Ins. by Act 21 of 1978, s. 8 (w.e.f. 15-7-1978).
2. Subs. by Act 1 of 1984, s. 62, for “of section 13” (w.e.f. 19-7-1969).
3. Ins. by Act 56 of 1968, s. 10 (w.e.f. 1-7-1971).
14
Provided that where under the proviso to sub-section (2), the scheme is deemed to have provided
for any payment being made on the date of its coming into force the amount of such payment shall be
included in calculating the original amount;
(b) “specified amount” means one thousand and five hundred rupees, or, as the case may be, the
amount fixed by the Corporation under the third proviso to sub-section (1).
17. Manner of payment by Corporation in case of winding up of insured banks.—(1) Where an
insured bank has been ordered to be wound up or to be taken into liquidation and a liquidator, by
whatever name called, has been appointed in respect thereof, the liquidator shall, with the lest possible
delay and in any case not later than three months from the date of his assuming charge of office, furnish
to the Corporation a list in such form and manner as may be specified by the Corporation showing
separately the deposits in respect of each depositor and the amounts of set off referred to in
sub-section (3) of section 16.
(2) Before the expiry of two months from the receipt of such list from the liquidator the Corporation
shall pay 1
[the amount payable under section 16 in respect of the deposit of each depositor—
(a) directly to the depositor, or
(b) to the depositor through such agency as the Corporation may determine, or
(c) to the liquidator.]
2
[(3) Where the Corporation pays under sub-section (2), any amount in respect of the deposit of a
depositor to the liquidator, the liquidator shall pay or cause to be paid that amount to the depositor and
any expenses incurred by the liquidator in making such payment shall be treated as expenses incurred in
the winding up of the insured bank.]
18. Manner of payment by Corporation in case of scheme of compromise or arrangement or of
reconstruction or amalgamation in respect of an insured bank.—(1) Where a scheme of
amalgamation of any insured bank with any other banking institution (hereinafter referred to as the
transferee bank) or a scheme of compromise or arrangement or of reconstruction in respect of such bank
has been sanctioned and the Corporation has become liable to pay to depositors of the insured bank under
sub-section (2) of section 16, the transferee bank where the scheme is of amalgamation and the insured
bank in any other case shall, with the least possible delay and in any case not later than three months from
the date on which such scheme takes effect, furnish to the Corporation a list in such form and manner as
may be specified by the Corporation and certified to be correct by the chief executive officer of the
transferee bank or, as the case may be, of the insured bank showing separately deposits in respect of each
depositor and the amounts of set off referred to in sub-section (3) of section 16 and also the amounts paid
or credited or deemed to have been paid under the scheme.
(2) Before the expiry of two months from the receipt of such list, the Corporation shall pay the
amount payable under section 16 either directly to the depositor or to the transferee bank or the insured
bank for being credited in his account.
3
[18A. Liability of Corporation to make interim payment to depositors of insured bank.—(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 (10 of 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.
1. Subs. by Act 56 of 1968, s. 11, for certain words (w.e.f. 1-7-1971).
2. Ins. by s. 11, ibid. (w.e.f. 1-7-1971).
3. Ins. by Act 30 of 2021, s. 4 (w.e.f. 1-9-2021).
15
(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.
(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 (10 of 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.]
16
19. Discharge of the liability of Corporation.—Any amount paid by the Corporation under section
17 or section 18 1
[or section 18A] in respect of a deposit shall, to the extent of the amount paid, discharge
the Corporation from its liability in respect of that deposit.
20. Provision for unpaid amounts.—Where any depositor to whom any payment is to be made in
accordance with the provisions of section 17 or section 18 2
[or section 18A] cannot be found or is not
readily traceable, adequate provision shall be made by the Corporation for such payment and the amount
of such provision shall be accounted for separately in its books.
21. Repayment of the amount to Corporation.—(1) Where any amount has been paid under
section 17 or section 18 3
[or section 18A] or any provision therefore has been made under section 20, the
Corporation shall furnish to the liquidator or the insured bank or to the transferee bank, as the case may
be, information as regards the amount so paid or provided for.
(2) On receipt of the information under sub-section (1), notwithstanding anything to the contrary
contained in any other law for the time being in force,—
(a) the liquidator shall, within such time and in such manner as may be prescribed, repay to the
Corporation out of the amount, if any, payable by him in respect of any deposit such sum or sums as
make up the amount paid or provided for by the Corporation in respect of that deposit;
(b) the insured bank or as the case may be, the transferee bank shall, within such time and in such
manner as may be prescribed, repay to the Corporation out of the amount, if any, to be paid or
credited in respect of any deposit after the date of the coming into force of the scheme referred to in
section 18 3
[or the direction, prohibition, order or scheme referred to in section 18A], such sum or
sums as make up the amount paid or provided for by the Corporation in respect of that deposit.
3
[(3) The Corporation may defer or vary the time limit for receipt of repayments due to it from the
insured bank or the transferee bank, as the case may be, for such period and upon such terms, as may be
decided by the Board in accordance with the regulations made in this behalf:
Provided that such regulations shall also provide for prudential principles to assess the capability of
the bank to make repayment to the Corporation and for prohibition of specified other classes of liabilities
from being discharged by the insured bank or the transferee bank till such time as repayment is made to
the Corporation.
(4) In case of any delay in repayment to the Corporation beyond the time period prescribed under
sub-section (2) or extended under sub-section (3), the Corporation may charge penal interest at a
maximum rate of two per cent. above the repo rate per annum for the amount to be repaid to the
Corporation and such penal interest shall rank equally for priority with the amount to be repaid under
sub-section (2).]