Under Section 43A(2) of the Banking Regulation Act,

Solution

Section 43A(2) provides that, in winding-up proceedings, after preferential payments are made or provided for, savings bank account depositors are first paid ₹250 or their credit balance (whichever is less), followed by all other depositors on the same terms. The proviso states that the sum total paid under clauses (a) and (b) to any one person who in his own name (and not jointly) is both a savings bank account depositor and a depositor in any other account of the same company shall not exceed ₹250. This prevents a depositor from claiming the preferential sum twice by virtue of holding multiple accounts. The provision predates the Deposit Insurance and Credit Guarantee Corporation scheme and must now be read in light of Section 43A(9), which excludes insured depositors from the sub-section (2) regime.