The Deposit Insurance and Credit Guarantee Corporation on 30th September 2021 has published the Deposit Insurance and Credit Guarantee Corporation General (Amendment) Regulations, 2021 to further amend the Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961.
Through this amendment a new regulation 21A which deals with submission of form for furnishing the list and certification by the insured bank has been inserted as follows:
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.
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.
Further, a new regulation 22A relating to deferring or varying the time limit for receipt of repayments under certain circumstances has been inserted as follows:
22A: 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.
The decision of the Board 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.
