(1) Every insured bank shall, so long as it continues to be registered, be liable to pay
a premium to the Corporation on its deposits at such rate or rates as may 1[with the previous approval of
the Reserve Bank, be notified by the Corporation, from time to time, to the insured banks and different
rates may be notified for different categories of insured banks:]
Provided that the premium payable by any insured bank for any period shall not exceed fifteen paisa
per annum for every hundred rupees of the total amount of the deposits in that bank at the end of that
period or, where its registration has been cancelled during that period, on the date of its cancellation:
2[Provided further that the Corporation may, having regard to its financial position and to the interests
of the banking system of the country as a whole, and with previous approval of the Reserve Bank of
India, from time to time, raise the aforesaid limit of fifteen paisa per annum for every hundred rupees of
the total amount of the deposits in that bank:
Provided also that] where the registration of any insured bank is cancelled under section 13 3[or
under section 13C] such cancellation shall not affect the liability of that bank for payment of premium for
the period before such cancellation and of any interest due under the provisions of this section.
(2) The premium shall be payable for such periods, at such times and in such manner as may be
prescribed.
(3) If an insured bank makes any default in payment of any amount of premium, it shall, for the
period of such default, be liable to pay to the Corporation interest on such amount at such rate 4[not
exceeding eight per cent. over and above the bank rate as may be prescribed].
1. Subs. by Act 21 of 1978, s. 8, for certain words (w.e.f. 15-7-1978).
2. Subs. by Act 30 of 2021, s. 3, for “Provided further that” (w.e.f. 1-9-2021).
3. Ins. by Act 56 of 1968, s. 9 (w.e.f. 1-7-1971).
4. Subs. by Act 21 of 1978, s. 8, for not exceeding eight per cent. per annum as may be prescribed (w.e.f. 15-7-1978).