Published on: December 13, 2021

DEPOSIT INSURANCE

DEPOSIT INSURANCE

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neurontin side effects Prime Minister paid deposit insurance to  depositors who could not access their money as their banks faced financial crises

DEPOSIT INSURANCE

  • 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.