Deposit Insurance System In India (DICGC)
DICGC
DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION
( Wholly owned subsidiary of the Reserve Bank of India)
Deposit Insurance and Credit Guarantee Corporation, RBI (2nd Floor), Opp. to
Mumbai Central Rly. Station, Mumbai – 400008 Tel. No. (022) 2308-4121
Commercial Banks: All commercial banks including branches of foreign banks functioning
in India, local area banks and regional rural banks are insured by the DICGC.Cooperative
Banks: All State, Central and Primary cooperative banks, also called urban cooperative
banks, functioning in States / Union Territories which have amended the local Cooperative
Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar
of Cooperative Societies of the State / Union Territory to wind up a cooperative
bank or to supersede its committee of management and requiring the Registrar not
to take any action regarding winding up, amalgamation or reconstruction of a co-operative
bank without prior sanction in writing from the RBI are covered under the Deposit
Insurance Scheme. At present all co-operative banks other than those from the State
of Meghalaya and the Union Territories of Chandigarh, Lakshadweep and Dadra and
Nagar Haveli are covered by the DICGC.
Primary cooperative societies are not insured by the DICGC.
What does the DICGC insure?
- The DICGC insures all deposits such as savings, fixed, current, recurring, etc.
deposits except the following types of deposits
- Deposits of foreign Governments;
- Deposits of Central/State Governments;
- Inter-bank deposits;
- Deposits of the State Land Development Banks with the State co-operative bank;
- Any amount due on account of and deposit received outside India
- Any amount, which has been specifically exempted by the corporation with the
previous approval of Reserve Bank of India
3. What is the maximum deposit amount insured by the DICGC?
Each depositor in a bank is insured upto a maximum of 5,00,000 (Rupees Five Lakh)
for both principal and interest amount held by him in the same right and same capacity
as on the date of liquidation/cancellation of bank's licence or the date on which
the scheme of amalgamation/merger/reconstruction comes into force.