REGISTRATION OF BANKING COMPANIES AND CO-OPERATIVE BANKS AS INSURED BANKS AND LIABILITY OF CORPORATION TO DEPOITORSCentral

Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961 in hindi

Intimation of registration.

(1)Where the Corporation has registered any 1[ 2[banking company, Regional Rural Bank] or co-operative bank] as an insured bank, it shall, within thirty days of its registration, send an intimation in writing to the 1[2[banking company, Regional Rural Bank] or co-operative bank] that it has been registered as an insured bank.
(2)Every such intimation shall indicate the manner in which the premium payable by the bank under section 15 may be calculated.

Summary

The Corporation must inform a bank in writing once it has been officially registered.
This written notice must be sent to the bank within thirty days of the registration date.
The rule applies to banking companies, Regional Rural Banks, and co-operative banks.
The notice must include instructions on how the bank should calculate its insurance premium.
These premium calculations must follow the specific rules described in section 15 of the Act.

Practical examples

1On July 1, 2024, the Corporation finishes registering a small local bank called People's Credit Bank. By July 15, 2024, the Corporation sends a letter to the bank's head office confirming they are now an insured bank and explaining the math for their first payment.

2A new Regional Rural Bank in a farming district gets registered on October 10. The Corporation ensures that a formal notice is delivered to them by November 5, which is within the thirty day limit required by the law.

FAQ

1. When must a bank receive its registration notice under Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961?

According to Section 14 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, the Corporation must send the written notice within thirty days after the bank is registered.

2. What information must the Corporation include in the notice sent under Section 14 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961?

Section 14 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, requires the notice to show the bank how to calculate the premium it owes to the Corporation.

3. Which types of banks are covered by the notification rules in Section 14 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961?

Under Section 14 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, the Corporation sends these notices to banking companies, Regional Rural Banks, and co-operative banks.

Test yourself

Q1.Under Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, what is the deadline for the Corporation to send a written notice to a newly registered bank?

Q2.According to Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, what specific financial detail must be included in the registration notice?

Q3.If a bank is registered but does not receive the notice required by Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961, which other section's requirements will the bank be unable to calculate correctly?

Q4.Which authority is responsible for sending the written notification of registration under Section 14 of The Deposit Insurance and Credit Guarantee Corporation Act, 1961?

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