Deposit Insurance
The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of the Reserve Bank of India (RBI). It is responsible for protecting bank depositors by providing insurance on their savings in the event of a bank failure or liquidation.
Key Features of DICGC Protection
| • Insurance Limit: Each depositor is insured up to a maximum of ₹5,00,000 (Five Lakhs) for both principal and interest amounts. |
| • Coverage per Bank: This limit applies separately to each bank. If you have accounts in different branches of the same bank, they are aggregated for the ₹5 lakh limit. |
| • Types of Deposits Covered: It covers all types of deposits, including Savings(SB), Fixed (FD), Vijay Cash Certificate (VCC), Current, and Recurring (RD). |
| • Cost: The insurance premium is paid entirely by the banks; depositors are not charged for this protection. |
| • New Disclosure Rule (2026): As of April 1, 2026, the RBI mandates that all banks must clearly disclose their deposit insurance premium payments in their annual reports to ensure transparency. |
