Deposit Insurance and Credit Guarantee Corporation (DICGC)

What is DICGC?

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.

The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits up to a limit of Rs. 5 lakh per account holder per bank. In case an individual's deposit amount exceeds Rs.5 lakh in a single bank, only Rs.5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.

How DICGC Works?

DICGC protects depositors' money kept in all commercial and foreign banks located in India; central, state, and urban co-operative banks; regional rural banks; and local banks, provided that the bank has opted for DICGC cover.

The agency's operations are performed as per The Deposit Insurance and Credit Guarantee Corporation Act, 1961 and The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961, framed by RBI under the provisions of sub-section (3) of Section 50 of the act. The act states that the establishment of this corporation is with the aim of insuring deposits, guaranteeing credit facilities, and other related matters.

What DICGC Does Not Cover?

• Deposits of state or Central governments
• Deposits from foreign governments
• State land development banks depositing with the state co-operative bank
• Inter-bank deposits
• Funds that are due on account of India and deposits received outside India
• Funds exempted by the corporation with the previous approval from RBI

DICGC Accreditation

When banks register with DICGC, the agency grants a printed certificate to the bank that displays information regarding the protection offered by DICGC to depositors of the insured bank. If there is any doubt, customers can enquire with the bank officials on the same.