DICGC (Deposit Insurance and Credit Guarantee Corporation)

The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of the Reserve Bank of India (RBI). Its primary role is to protect bank depositors by providing insurance on their deposits in case a bank fails or is liquidated.

Features of DICGC Protection

• Insurance Limit: Each depositor is insured up to ₹5,00,000 (Rupees Five Lakhs), including both principal and interest.
• Coverage per Bank: This limit applies separately to each bank. Deposits in different banks are insured individually up to ₹5 lakh.
• Clubbing of Accounts: Multiple accounts (Savings, Fixed, Current, etc.) in the same bank are combined for the ₹5 lakh limit.
• Types of Deposits Covered: Includes savings, fixed (FD), current, and recurring (RD) deposits.
• Cost: The insurance premium is paid entirely by banks; depositors do not pay anything for this protection.