Mumbai, the 30th September, 2021
DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION GENERAL (AMENDMENT) REGULATIONS, 2021
CO.DICG.SECD.No.S 278/01-01-013/2021-2022.—In exercise of the powers conferred by Sub-section (1) and clause (j) of Sub-section (2) of Section 50 of the Deposit Insurance and Credit Guarantee Corporation Act 1961(No.47 of 1961), the Board of Deposit Insurance and Credit Guarantee Corporation, with the previous approval of the Reserve Bank of India, is pleased to make the following amendments to the Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961, hereinafter known as “Principal Regulations”.
1. These Regulations may be called the Deposit Insurance and Credit Guarantee Corporation General (Amendment) Regulations, 2021.
2. These Regulations shall deemed to have come into force from the date September 22, 2021.
3. The following amendments be made to the Principal Regulations:
(i) In the Principal Regulations, after Regulation 21 the following shall be inserted, namely:–
“21A. (1) The insured bank, while furnishing the list and the certification under sub-section (2) of section 18A, shall submit in such form as specified by the Corporation, the name and account details of depositors who have affirmed their willingness to receive the insured amount in respect of their deposit in the insured bank, and that form shall also contain a declaration signed by the chief executive officer/the person in charge as to the correctness of the contents thereof along with a confirmation as to availability of the declarations signed and submitted by the depositors, and an undertaking to preserve and submit the said declarations to the Corporation, within such time and in such manner as specified by the Corporation.
(2) The insured bank shall obtain willingness of the depositors in such form as may be specified by the Corporation, which shall necessarily include an express declaration of willingness signed by the depositor to receive the insured amount along with a certification by the chief executive officer/the person in charge as to the correctness of the contents thereof, and the forms so obtained shall be submitted to the Corporation within such time and in such manner specified by the Corporation.
(3) Where the insured bank receives willingness of a depositor after submission of the Form under sub-regulation (1) but within the period specified in the first proviso to sub-section (4) of section 18A, it shall submit the details thereof in the same format specified under sub-regulation (1) within such time and in such manner specified by the Corporation in the same format specified under sub- regulation (1).
(4) The claim settlement procedure adopted by the Corporation with the approval of the Board, for verifying the genuineness and authenticity of the claim made by the liquidator under section 17 and the transferee/insured bank under section 18 shall mutatis mutandis be applied for verification of the genuineness and authenticity of the –
(a) claim made in the list furnished by the insured bank under sub-section (2) of section 18A; and
(b) the forms and declarations referred to in sub-regulations (1), (2) and (3), for ascertaining the willingness of the depositor.”
(ii) In Principal Regulations, after Regulation 22, the following shall be inserted, namely:–
“22A. (1) Notwithstanding anything contained in Regulation 22, where the Corporation is satisfied about the financial position of the insured bank or the transferee bank, as the case may be, and keeping in view the expected time period that would be sufficient to generate cash flows, capital infusion, liquidity, business profits, sale of assets, restructuring of the insured bank, to pay the stakeholders including uninsured depositors and other creditors, makes an assessment that the bank is not capable of making repayment to the Corporation, then it may defer or vary the time limit for receipt of repayments due to it for such period and upon such terms as the Board may specifically decide.
(2) The decision of the Board referred in sub-regulation (1) shall be binding on the bank and till such time as repayment is made to the Corporation, the insured bank or the transferee bank, as the case may be, shall be prohibited from discharging the classes of liabilities, other than those specified in terms of the decision of the Board.
(3) The Corporation may, for the purpose of assessment of the financial position and the capability of the bank to make repayment, call upon the bank, from time to time or periodically, to submit such records or statements and furnish such information as the Corporation considers it necessary and expedient and the bank shall comply with the same.”