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Indian Express
13-06-2025
- Business
- Indian Express
Guru Raghavendra Sahakara Bank scam: 5 years on, victims demand deposit insurance hike from Rs 5-lakh limit
According to the bank data accessed by The Indian Express, 31,376 individuals had invested up to Rs 5 lakh, totaling Rs 84.57 crore, and 5,853 individual accounts had more than Rs 5 lakh, totalling up to Rs 1,350 by Bhoomika Roy Banerjee and Mehak Singh Five-and-a-half years after the Reserve Bank of India imposed a moratorium on Sri Guru Raghavendra Sahakara Bank Niyamita (SGRSBN) in Basavanagudi, the affected depositors have intensified their demand for enhanced deposit insurance coverage. The victims, in a meeting held on Friday, have sought an increase from the current Rs 5-lakh limit imposed by the RBI under the Deposit Insurance and Credit Guarantee Corporation (DICGC). Harish V, joint secretary of the United Forum of Depositors — a group of SGRSBN depositors who are fighting to get back their money — stated that the government is doing little for their returns. In 2023, the Karnataka government ordered a Central Bureau of Investigation probe to look into the case where Rs 2,500 crore was allegedly misappropriated by the bank management. So far, the Enforcement Directorate (ED) has attached assets worth Rs 159 crore as part of its probe into the alleged scam. However, Harish said, 'A Right To Information (RTI) query revealed that CBI had never taken the case to investigate. Thousands of them (depositors) are still in trouble and are unable to lead their lives.' He pointed out that even after five years there has been no attempt to recover the money by the defaulters or even by those from the management that led to the collapse of the bank. The administrators appointed by the government have changed but nothing has yielded any results, he added. According to the bank data accessed by The Indian Express, 31,376 individuals had invested up to Rs 5 lakh, totaling Rs 84.57 crore, and 5,853 individual accounts had more than Rs 5 lakh, totalling up to Rs 1,350 crore. Out of the 45,000 depositors, most of them got the Rs 5 lakh insurance amount from Deposit Insurance and Credit Guarantee Corporation (DICGC). However, over 15,000 depositors who have deposited more than Rs 6 lakh are yet to get the complete relief amount. G K Gururaj, another joint secretary, said that the current DICGC insurance limit of ₹5 lakh provides inadequate protection for depositors who have lost their savings, running into lakhs and crores of rupees. 'A forensic report submitted to RBI has been passed to the administration for assessment. Preliminary estimates suggest losses of ₹1,944 crore, though depositors have expressed willingness to forgo nearly Rs 650 crore in accumulated interest if their principal amounts can be recovered,' he added. More than 60 of the depositors, mainly elderly citizens, have died after the bank fell into controversy, according to the forum. Among the depositors who attended the meeting was 76-year-old Usha Devi, a retired BBMP employee. Her husband died six months ago. Vasudev, an active member of the forum and a depositor, shared how his brother was recently denied hospital admission due to lack of funds. He also talks about the plight of elderly depositors whose basic medical necessities aren't met. He said, 'This is a humanitarian issue here; it's more than the money. Most of us are frustrated.' The RBI imposed withdrawal restrictions on SGRSBN in January 2020. (Bhoomika Roy Banerjee and Mehak Singh Interns with The Indian Express)
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Business Standard
29-05-2025
- Business
- Business Standard
Insured deposits rise 7% to ₹96.7 trillion as of Sept 2024: RBI report
Insured deposits in India rose by 7.11 per cent year-on-year (YoY) to ₹96.7 trillion as on 30 September 2024, up from ₹90.32 trillion in the year-ago period, according to the Reserve Bank of India's (RBI's) Annual Report. As of the same date, the number of fully insured deposit accounts under the coverage limit stood at 286.9 crore, compared to 281.8 crore a year earlier. These constituted 97.7 per cent of the total number of accounts, slightly down from 97.9 per cent in the previous year. The reserve ratio (i.e., Deposit Insurance Fund/Insured Deposits) stood at 2.21 per cent as on 30 September 2024, up from 2.02 per cent a year earlier. Currently, the coverage limit is 2.5 times the GDP per capita for FY25. The Deposit Insurance and Credit Guarantee Corporation (DICGC) levies a flat rate premium of 0.12 per cent per annum on the total assessable deposits of banks to provide deposit insurance. In FY25, the DICGC collected ₹26,764 crore as deposit insurance premium—12.1 per cent higher year-on-year. During the year, total claims settled amounted to ₹476 crore, all of which were for 43 urban co-operative banks (UCBs) that were either liquidated or placed under All-Inclusive Directions. The size of the Deposit Insurance Fund (DIF) stood at ₹2.29 trillion as on 31 March 2025, registering a 15.2 per cent YoY increase from ₹1.98 trillion a year earlier. Year Total Deposits Insured Deposits Deposit Insurance Fund FY21 134.88 68.71 1.1 FY22 149.67 76.21 1.3 FY23 165.5 81.1 1.47 As on Sept 30, 2023 181.14 83.89 1.7 As on Sept 30, 2024 204.19 90.32 1.99* 96.75 2.29*
Time of India
24-05-2025
- Business
- Time of India
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
Bank FD interest rate FD rate up to 9.1% FD rate up to 8.65% Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Live Events FD rate up to 8.5% FD rate up to 8.25% FD rate up to 8.2% When is TDS deducted from bank FDs? There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 9.1%Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year Small Finance Bank is offering 8.65% interest rate on FD for five year as of May 21, 2025NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year Small Finance Bank is offering 8.25% interest rate on FD for five year Small Finance Bank is offering 8.2% interest rate on FD for five year While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.
Hindustan Times
20-05-2025
- Business
- Hindustan Times
HCBL Cooperative Bank mgmt to appeal after RBI cancels licence
The Lucknow-based HCBL Cooperative Bank Limited management has decided to appeal to the union finance secretary, following the Reserve Bank of India's (RBI) decision on Monday to cancel the bank's certificate of registration (CoR). The RBI cited inadequate capital and poor earning prospects as reasons for the cancellation. On RBI's direction, the Commissioner and Registrar of Cooperative Societies, Uttar Pradesh, has initiated the process to wind up the bank and appoint a liquidator. The liquidator will take control of the bank's management, including its assets and liabilities, and will use the proceeds from asset sales to repay creditors according to their priority, Heera Lal, Commissioner and Registrar, Cooperative Societies UP, said. HCBL Cooperative Bank, launched in 2002, expanded its services across nearby districts including Unnao, Barabanki, Rae Bareli, and Sitapur. The bank operated four branches and one extension counter in Lucknow, providing telebanking, SMS banking, personalised banking, and general services to approximately 10,000 customers, a bank officer who does not wished to be named said. The bank's head office in Gomti Nagar was notably quiet on Tuesday. A few customers visited to inquire about the bank's operations after the RBI order, while bank officials held meetings to assess the situation. The bank faced operational challenges starting in 2015 when RBI ordered its closure under Section 35A of the Banking Regulation Act, 1949. It resumed activities in 2018 but again suspended operations in 2023 following RBI directives. The bank was allowed to operate until May 2025, subject to review, the HCBL officer said. According to the RBI, the bank's current financial position prevents it from fully repaying depositors, and continuing operations would harm public interest. 'The cancellation prohibits HCBL from conducting any banking business, including accepting or repaying deposits, with immediate effect.' Depositors are entitled to claim deposit insurance up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As per bank data, 98.69% of depositors qualify for full reimbursement, with DICGC having paid ₹21.24 crore as of January 31, 2025.
Mint
19-05-2025
- Business
- Mint
RBI cancels licence of Lucknow-based HCBL Co-operative Bank for not complying with rules
Mumbai:The Reserve Bank on Monday said it has cancelled the licence of Lucknow-based HCBL Co-operative Bank as the lender does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 19, the Reserve Bank of India (RBI) said in a statement. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said. On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to ₹ 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, 98.69 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC, RBI said. As of January 31, 2025, DICGC has already paid ₹ 21.24 crore of the total insured deposits. Giving details, the RBI said the cooperative bank has failed to comply with the requirements of certain sections of the Banking Regulation Act, 1949, and the continuance of the bank is prejudicial to the interests of its depositors. "The bank with its present financial position would be unable to pay its present depositors in full," it said and added that public interest would be adversely affected if the bank is allowed to carry on its banking business any further. Consequent to the cancellation of its licence, HCBL Co-operative Bank has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect.
