DICGC to pay Puducherry Co-operative Urban Bank depositors up to Rs 5 lakh each

The Deposit Insurance and Credit Guarantee Corporation (DICGC) said on 22 October 2026 that it will pay eligible depositors of Puducherry Co-operative Urban Bank Ltd, Puducherry, under Section 18A of the DICGC Act, 1961. Depositors must submit their claims to the bank by 5 December 2026, and DICGC has set 19 January 2027 as its date of payment. Each depositor can receive up to Rs 5 lakh in the same capacity and the same right.

What Happened

According to the DICGC press release, the bank has been under directions, which the release refers to as AID, with effect from 21 October 2026. DICGC said it will make the payments subject to the bank submitting its claim list in the form and manner DICGC has prescribed.

DICGC advised depositors to submit their deposit insurance claims to the bank. Each claim should be supported by officially valid documents of identity and a written consent to receive the amount lying in credit of their deposit, which DICGC calls a willingness declaration. Depositors must also give the details of an alternate bank account into which the money will be credited. The release says the willingness declaration will apply to all deposit accounts a depositor holds in the bank.

Depositors who submit valid documents will be paid into the alternate bank account they name or, with their consent, into their Aadhaar-linked bank account. DICGC said this is subject to the bank meeting the statutory timelines for submitting the depositor list under Section 18A(2).

What It Means

If you hold a deposit with Puducherry Co-operative Urban Bank Ltd, the key date is 5 December 2026. Submit your claim at the bank before then, with an identity document, the signed willingness declaration and the details of another bank account in your name. The insured amount is capped at Rs 5 lakh for deposits held in the same capacity and the same right, so the payout covers your balance up to that limit.

The payment date of 19 January 2027 depends on the bank sending DICGC its claim list on time, as the release notes. DICGC explains the claim settlement procedure for depositors of such banks at https://www.dicgc.org.in/public-awareness. A depositor with a complaint about the bank's handling of the claim can approach RBI at https://cms.rbi.org.in.

Source: DICGC press release