Last week, an image of an HDFC passbook with the deposit insurance cover stamp began doing the rounds on social media, causing panic among customers. The stamp read that in case of liquidation of the bank, account holders will get a maximum amount of Rs 1 lakh.
"The deposits of the bank are insured with DICGC (Deposit Insurance and Credit Guarantee Corporation) and in case of liquidation of the bank, the DICGC is liable to pay each of the depositors through the liquidator. The amount of this deposit is up to Rs 1 lakh within 2 months from the date of claim list from the liquidator,” the stamp read.
Fresh on the heels of the PMC bank fiasco, where RBI restricted withdrawals leaving several depositors in the lurch, this stamp caused further panic. Many took to social media to say that nobody money is safe in banks.
@narendramodi @PMOIndia
— deepak sharma (@dippy_7227) October 18, 2019
Firstly PMC Bank Frauds where A/c Holders are suffering and Now,@HDFC_Bank says that (through stamps on PB) your money is insured upto 1 Lac.
What about the rest ? It is our Hard Earned Money.#ShamefulDigitalIndia @nsitharaman @RBI @FinMinIndia pic.twitter.com/RAXuaIP7NU
HDFC BANK Using Stamp on Passbook and declaring they are not liable to take the responsibility over one Lakh....that means savings upto *ONE LAKH ONLY is safe in Private Banks* pic.twitter.com/naWjMXRcod
— Dr.Jitendra Awhad (@Awhadspeaks) October 16, 2019
HDFC Bank has clarified that the information has been inserted as per RBI circular dated June 22, 2017, which requires all banks including Small Finance Banks and Payments Banks to incorporate information about 'deposit insurance cover'. “The passbooks without printed information have been stamped with the requisite information so as to be fully compliant with extant RBI guidelines. None of us should have cause for concern whatsoever,” HDFC Bank said in a statement.
#ImportantClarification
— Neeraj Jha (@NeerajHDFCBank) October 17, 2019
This is further to our twitter post last night w.r.t an image of a passbook being circulated via Whatsapp and social media that seems to have caused some concern. The image pertains to information about the deposit insurance cover. (1/3)
The circular, dated June 22, 2017, further states that banks shall also incorporate information about ‘deposit insurance cover’ along with the limit of coverage, subject to change from time to time, upfront in the passbooks.
What is DGCIC?
Deposit Insurance and Credit Guarantee Corporation (DGCIC) is a corporation constituted under the RBI by the government with the aim of protecting customer interest when a bank collapses.
DGCIC covers all commercial banks functioning in India and all co-operative, local area banks and regional rural banks as well. It also covers branches of foreign banks operating in India
And all deposits made by customers of these banks, even FDs and RDs are covered.
If a bank goes bust or if RBI cancels its license, every depositor of that bank is insured for a maximum amount of Rs 1 lakh. Moreover, if you have deposits in different branches of the bank, all the deposits are aggregated and a maximum amount upto rupees one lakh is paid.
For more information on DGCIC, check here.