Published on: December 13, 2021
Prime Minister paid deposit insurance to depositors who could not access their money as their banks faced financial crises
- Providing insurance protection to the depositor’s money by receiving a premium.
- By Deposit Insurance and Credit Guarantee Corporation (DICGC) under RBI
- To protect depositors if a bank fails.
- DICGC charges 10 paise per ₹100 of deposits held by a bank.
- The premium paid by the insured banks to the Corporation is paid by the banks and is not to be passed on to depositors.
- DICGC last revised the deposit insurance cover to ₹5 lakh in Feb, 2020, raising it from ₹ 1 lakh since 1993.
- It will be provided within 90 days in the event of a bank coming under the moratorium imposed by the RBI.
- Coverage: All deposits such as savings, fixed, current, recurring deposits, etc. in all commercial banks, functioning in India. Deposits in State, Central and Primary cooperative banks, functioning in States/Union Territories are also covered.
- Does not include
- 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 specifically exempted by the DICGC with previous approval of RBI.