If a bank’s licence is revoked, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has to pay every depositor up to Rs 5 lakh based on his/her deposits and loans in the bank. From the claim list submitted by the liquidator, an admissible claim amount is arrived at by DICGC. If the liquidated bank has liquid funds available, they are advised to pay to the eligible depositors and no amount is released by DICGC. However, in case of partial or non-availability of liquid funds, part or full payment, as applicable, is released by DICGC. The amount paid from liquid funds by the liquidator is accounted as release of funds by DICGC.
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