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Date: 2021-10-01 Category: Extra Ordinary State: Union Government Country: India

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

Issued by Deposit Insurance and Credit Guarantee Corporation · Not Applicable

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Executive Summary & Key Takeaways

**Report on Deposit Insurance and Credit Guarantee Corporation General Amendment Regulations, 2021** **1. Executive Summary:** This report analyzes the Deposit Insurance and Credit Guarantee Corporation (DICGC) General Amendment Regulations, 2021, based solely on the provided official gazette notification. The amendment primarily concerns modifications to regulations regarding the process by which insured banks furnish depositor information and willingness to receive insured amounts, as well as introducing provisions for the deferral or variation of repayment timelines for insured or transferee banks under specific circumstances. Key changes involve specifying forms and declarations required from insured banks, and granting the DICGC Board authority to adjust repayment schedules. **2. Introduction:** This report aims to provide a comprehensive overview of the Deposit Insurance and Credit Guarantee Corporation (DICGC) General Amendment Regulations, 2021. The analysis is based exclusively on the text of the official notification provided, focusing on understanding the objectives, changes introduced, and potential impact of the amendment. **3. Policy Overview:** * This is an amendment to the Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961. * Core Objective(s): The amendment seeks to streamline the process of disbursing insured deposit amounts, and provide flexibility to DICGC in managing repayments from insured or transferee banks facing financial difficulties. **4. Background and Rationale:** The amendment seems designed to address potential inefficiencies or gaps in the original regulations regarding the disbursement of insured deposit amounts and the management of repayments to the DICGC. Specifically, the provisions regarding depositor willingness forms and the process for managing bank repayments to the DICGC suggest the need for greater clarity and flexibility in these areas. The amendment introduces standardization in how banks provide information of depositors willing to receive insured amounts as well as provide DICGC with more latitude in deciding when and how a bank repays its obligations. **5. Key Provisions / Changes:** The amendment introduces the following key changes: * **Amendment to Regulation 21:** This amendment inserts Regulation 21A, which mandates that insured banks must submit specific forms, specified by the Corporation, detailing the name and account details of depositors who have expressed their willingness to receive the insured amount. The bank must also provide a declaration from its chief executive officer or person in charge, attesting to the accuracy of the information and confirming the availability of signed declarations from the depositors. This declaration must be preserved and submitted to the Corporation upon request. The amendment also introduces procedures by which insured banks submit details of depositors who express their willingness after initial submission of the Form under subregulation 1. Furthermore, it specifies that claim settlement procedure adopted by the Corporation for claims made by liquidators shall be applied for verification of the genuineness and authenticity of the a claim made in the list furnished by the insured bank under subsection 2 of section 18A; and b the forms and declarations referred to in subregulations 1, 2 and 3, for ascertaining the willingness of the depositor. * **Effect:** Standardizes the format and information required from insured banks to facilitate faster and more efficient disbursement of insured deposits. Ensures willingness forms are collected and verifiable. * **Amendment to Regulation 22:** This amendment inserts Regulation 22A, allowing the DICGC Board to defer or vary the time limit for repayments due from insured or transferee banks if the Board is satisfied that the bank's financial position and projected cash flows make timely repayment unlikely. During the deferral period, the bank is prohibited from discharging classes of liabilities other than those specified by the Board. * **Effect:** Provides the DICGC with greater flexibility in managing its assets and liabilities, preventing exacerbation of bank financial situation, potentially increasing chances of full repayment in the long run. **6. Target Audience and Stakeholders:** Based on the provided text, the primary stakeholders affected by these amendments are: * Insured Banks: Who are required to comply with the new reporting and documentation requirements related to depositor willingness. * Depositors of Insured Banks: Whose claims process may be affected by the new depositor willingness requirements. * The Deposit Insurance and Credit Guarantee Corporation (DICGC): Which gains greater control over repayment schedules and claim verification procedures. * Transferee Banks: Who may be subject to repayment deferrals or variations. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Deposit Insurance and Credit Guarantee Corporation (DICGC) Board and its executive director (as the notification is signed by the Executive Director). * **Timelines and Procedures:** The regulations came into force on September 22, 2021. Insured banks are required to submit depositor information in a form specified by the DICGC, within timelines also specified by the DICGC. The DICGC also specifies the manner in which insured banks submit details of depositors who express their willingness after initial submission of the Form under subregulation 1. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these amendments are: * Faster and more efficient disbursement of insured deposit amounts to depositors who are willing to receive them. * Improved management of the DICGC's financial resources by allowing for flexible repayment schedules from financially distressed banks. * Enhanced monitoring and oversight of insured banks' financial positions by the DICGC. **9. Conclusion:** The DICGC General Amendment Regulations, 2021, represent a focused effort to improve the efficiency of deposit insurance payouts and provide flexibility in managing repayments from insured banks. By standardizing depositor willingness procedures and granting the DICGC Board authority to adjust repayment schedules, these amendments aim to enhance the overall effectiveness and stability of the deposit insurance system.

Key Entities Referenced

Deposit Insurance and Credit Guarantee Corporation: A corporation mentioned in the context of general amendment regulations. Deposit Insurance and Credit Guarantee Corporation Act 1961: Act under which powers are conferred for the amendment regulations. Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961: The regulations being amended by the current notification. Deposit Insurance and Credit Guarantee Corporation General Amendment Regulations, 2021: The title of the current amendment regulations. Reserve Bank of India: The institution whose approval is required for the amendments. Mumbai, Maharashtra: City where the notification was issued R SUBRAMANIAN: Executive Director who signed the notification. Board of Deposit Insurance and Credit Guarantee Corporation: The board that makes the amendments to the regulations.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-01102021-230102 xxxGIDHxxx CG-MH-E-01102021-230102 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 429] िई कदल्ली, ि क्रिार, अक्त बू र 1, 2021/आज‍ि ि 9, 1943 No. 429] NEW DELHI, FRIDAY, OCTOBER 1, 2021/ASVINA 9, 1943 जिक्षपे बीमा और प्रत्यय गारंटी जिगम अजधसचू िा म ंबई, 30 जसतम् बर, 2021 जिक्षपे बीमा और प्रत्यय गारंटी जिगम सामान्य (सिं ोधि) जिजियमािली, 2021 केंका.डीआईसीिी.एसईसीडी.स.ंएस 278 / 01-01-013/2021-2022.—जिक्षेप बीमा और प्रत्यय गारंटी जिगम अजधजियम, 1961 (1961 की संख्या 47) की धारा 50 की उपधारा(1) और उपधारा (2) के खंड (ञ) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, जिक्षेप बीमा और प्रत्यय गारंटी जिगम का बोडड, भारतीय ररज़िड बैंक के पूिड अि मोदि से, जिक्षेप बीमा और प्रत्यय गारंटी जिगम सामान्य जिजियमािली, 1961, इसके बाद इसे “प्रम ख जिजियमािली” के रूप में िािा िाएगा, में सहर्ड जिम्नजलजखत संिोधि करता ह ै: 1. इस जिजियमािली का िाम जिक्षेप बीमा और प्रत्यय गारंटी जिगम सामान्य (संिोधि) जिजियमािली, 2021 होगा । 2. ये जिजियम 22 जसतंबर 2021 से प्रभािी मािे िाएंगे । 3. प्रम ख जिजियमािली में जिम्नजलजखत संिोधि ककए िाएं: (i) प्रम ख जिजियमािली में जिजियम 21 के बाद जिम्नजलजखत अंतिेजित ककया िाएगा, अर्ाडत :- “21ए (1) बीजमत बैंक, धारा 18ए की उप-धारा (2) के तहत सूची और प्रमाणीकरण प्रस्ट्त त करते समय, जिगम द्वारा जिर्दष्टड रूप में उि िमाकताडओं के िाम और खातों का जििरण प्रस्ट्त त करेगा, जिन्होंिे बीमाकृत बैंक में अपिी िमा राजि के संबंध में बीजमत राजि प्राप्त करिे की अपिी सम्मजत की प जष्ट की ह ै और उस फॉमड में म ख्य कायडकारी अजधकारी/प्रभारी व्यजि द्वारा हस्ट्ताक्षररत एक घोर्णा भी िाजमल होगी िो िमाकताडओं द्वारा हस्ट्ताक्षररत और प्रस्ट्त त 5582 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] घोर्णाओं की उपलब्धता के बारे में प जष्ट के सार् इसकी सामग्री की ि द्धता के बारे में होगी, सार् ही इि घोर्णाओं को संरजक्षत करिे और जिगम द्वारा जिर्दष्टड ककए गए समय के भीतर प्रस्ट्त त करिे का पररिचि होगा। (2) बीमाकृत बैंक िमाकताडओं की सम्मजत को जिगम द्वारा जिर्दष्टड फॉमड में प्राप्त करेगा जिसमें बीमा राजि प्राप्त करिे के जलए िमाकताड द्वारा हस्ट्ताक्षररत सम्मजत की एक स्ट्पष्ट घोर्णा अजििायड रूप से िाजमल होगी। सार् ही इसमें दी गई सामग्री की ि द्धता के बारे में म ख्य कायडकारी अजधकारी/प्रभारी व्यजि द्वारा प्रमाणि भी िाजमल होगा और इस प्रकार प्राप्त फॉमड जिगम द्वारा जिर्दष्टड समय के भीतर और तरीके से जिगम को प्रस्ट्त त ककए िाएंगे। (3) िहां बीजमत बैंक उप-जिजियम (1) के तहत फॉमड िमा करिे के बाद, लेककि धारा 18 ए की उपधारा (4) के पहले, परंत क में जिर्दष्टड अिजध के भीतर, िमाकताड की सम्मजत प्राप्त करता है, िह उसका जििरण उप-जिजियम (1) के तहत जिर्दष्टड फॉमड में जिगम द्वारा जिर्दष्टड समय के भीतर और तरीके से प्रस्ट्त त करेगा। (4) धारा 17 के तहत पररसमापक द्वारा ककए गए दािे और धारा 18 के तहत अंतररती/बीजमत बैंक की सत्यता और प्रामाजणकता के सत्यापि के जलए बोडड के अि मोदि से जिगम द्वारा अपिाई गई दािा जिपटाि प्रकक्रया आि‍यक पररितडिों के सार् जिम्न की िास्ट्तजिकता और प्रामाजणकता के सत्यापि के जलए लागू की िाएगी - (क) धारा 18ए की उपधारा (2) के तहत बीजमत बैंक द्वारा प्रस्ट्त त सूची में ककया गया दािा; तर्ा (ख) िमाकताड की सम्मजत सज िजित करिे के जलए उप-जिजियम (1), (2) और (3) में संदर्भडत फॉमड और घोर्णाएं। ” (ii) प्रम ख जिजियमािली में जिजियम 22 के बाद जिम्नजलजखत अंतिेजित ककया िाएगा, अर्ाडत :- “22ए (1) जिजियम 22 में जिजहत ककसी भी बात के होते हुए भी, िहां जिगम बीमाकृत बैंक या अंतररती बैंक, िैसा भी मामला हो, की जित्तीय जस्ट्र्जत के बारे में संत ष्ट ह ै और अपेजक्षत समयािजध को ध्याि में रखते हुए िो िकदी प्रिाह उत्पन्न करिे के जलए पयाडप्त होगी, पूंिी प्रिाह, तरलता, व्यािसाजयक लाभ, पररसंपजत्तयों की जबक्री, बीजमत बैंक का प िगडठि, अबीजमत िमाकताओंड और अन्य लेिदारों सजहत जहतधारकों को भ गताि करिे के जलए, यह आकलि करता है कक बैंक जिगम को प िभ डगताि करिे में सक्षम िहीं है, तो जिगम इसे स्ट्र्जगत कर सकता है या दये च कौती की प्राजप्त की समय-सीमा को ऐसी अिजध के जलए और ऐसी ितों पर, िो बोडड जििेर् रूप से तय कर सकता है, अलग-अलग कर सकता ह।ै (2) उप-जिजियम (1) में संदर्भडत बोडड का जिणडय बैंक पर बाध्यकारी होगा और िब तक जिगम को प िभ डगताि िहीं ककया िाता ह,ै तब तक बीजमत बैंक या अंतररती बैंक को, िैसा भी मामला हो, बोडड के जिणडय के संदभड में जिर्दष्टड श्रेजणयों की दिे दाररयों के अलािा अन्य दिे दाररयों के जििडहि से प्रजतबंजधत ककया िाएगा। (3) जिगम जित्तीय जस्ट्र्जत और बैंक की च कौती करिे की क्षमता के आकलि के उद्दे‍य से, समय-समय पर या आिजधक रूप से बैंक को ऐसे ररकॉडड या जििरण िमा करिे और ऐसी िािकारी प्रस्ट्त त करिे के जलए कह सकता ह ै जिसे जिगम आि‍यक और समीचीि समझता ह ैऔर बैंक इसका अि पालि करेगा।” आर स ब्रमजणयि, कायडपालक जिदेिक [जिज्ञापि-III/4/असा./294/2021-22] DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION NOTIFICATION 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”.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 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.” R SUBRAMANIAN, Executive Director [ADVT.-III/4/Exty./294/2021-22] Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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