DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION (DICGC)

About:

• Objective: Providing insurance of deposits and guaranteeing of credit facilities.
  
  
• Banks insured by DIGC:
  • Deposit insurance by DICGC covers all commercial banks, local area banks, regional rural banks and co-operative banks and branches of foreign banks in India.
    
    
  • Primary cooperative societies, Non-banking financial companies (NBFCs) and mutual funds are not insured by the DICGC.
    
    
  
  
  
• What does the DICGC insure? In the event of a bank failure, DICGC protects bank deposits that are payable in India. The DICGC insures all deposits such as savings, fixed, current, recurring, etc. 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 any deposit received outside India;
    
    
  • Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.
    
    
  
  
  
• Maximum deposit amount insured by the DICGC:
  • Each depositor in a bank is insured upto a maximum of Rs.1 Lakh.
    
    
  • The coverage under the DICGC was last revised in 1993. Thus, there have been frequent demands for raising this cover which is seen as too small
    
    
  
  
  
• Parent Body: DICGC is a subsidiary of Reserve Bank of India (RBI).
  
  
• Established in:
  
  
• Status: A statutory body established under Deposit Insurance and Credit Guarantee Corporation Act, 1961.
  
  
• HQ:
  
  
• Administration: Deputy Governor of RBI acts as its Chairman.