Bank of India conducts last-mile outreach to disburse time-bound insurance payment

Minister for Road Transport and Highways Shri Nitin Gadkari
Minister for Road Transport and Highways Shri Nitin Gadkari

Mumbai: Bank of India announced today that it hosted a last-mile outreach campaign for the distressed account holders of 16 urban cooperative banks that went bust and helped them receive their deposit insurance cover of up to Rs 5 lakh in a time-bound manner.

The event was held in the presence of Minister for Road Transport and Highways Shri Nitin Gadkari and as per the directives of the Department of Financial Services (DFS), Ministry of Finance. Bank of India is amongst 18 field locations selected for ensuring quick and smooth insurance disbursal. The principal event was webcast pan-India by Hon’ble Prime Minister Shri Narendra Modi in New Delhi.

During the outreach event, Bank of India informed as well as assisted the affected depositors in filing insurance claims so that they received the payments seamlessly and without delays. Following concerted efforts by all stakeholders, the campaign has gained momentum with interim payments by RBI subsidiary, Deposit Insurance and Credit Guarantee Corporation (DICGC), increasing manifold in the last 15 days.

Specifically, over 200 depositors benefited from attending one such outreach event at Bank of India’s Sangli branch in Maharashtra. The Bank assisted in remitting a deposit insurance amount of Rs 37.23 crore to 4,389 account holders of Sarjerao Naik Shiarala Sahakari Bank, in the presence of Shri Kapil Moreshwar Patil, Hon’ble Minister of State for Panchayati Raj.

The Deposit Insurance Credit Guarantee Corporation (Amendment) Act, 2021 came into effect September 1, 2021, inter alia, to ensure that distressed depositors had access to deposit insurance cover, which was raised from Rs 1 Lakh to Rs 5 Lakh in February 2020.