Deposit Insurance and Credit Guarantee Corporation of India (DICGC)

DICGC is the Fully owned subsidiary of RBI.

 It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.

DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.

The authorized capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI). The management of the Corporation vests with its Board of Directors, of which a Deputy Governor of the RBI is the Chairman currently Shri N.S.Vishwanathan. The Head Office of the Corporation is at Mumbai.

Deposit Insurance

Banks covered by Deposit Insurance Scheme. 

• All commercial banks, Local Area Banks, and Regional Rural Banks.
• Co-operative Bank

Types of Deposits Covered

 DICGC insures all bank deposits, such as saving, fixed, current, and 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 banks
• 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 the RBI.

Insurance Premium

 The premium paid by the insured banks to the Corporation is bear by the banks themselves.

The formula for working out the half-yearly premium is as follows: –

Deposits in rupees rounded to thousands X 0.05 / 100

The deposits should be rounded off to the nearest thousand Rupees.