DEPOSIT COVERED UNDER DEPOSIT INSURANCE CREDIT GURENTEE CORPORATION (DICGC) :
- Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.
- The functions of the subsidiary are governed by the provisions of 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the Act.
- A maximum of Rs.5,00,000 (after the budget of 2020-21) is insured for each user for both principal and interest amount. If the customer has accounts in different branches of the same bank, all of those accounts are insured to a maximum of Rs.5,00,000 each.
- DICGC protects depositors' money kept in all commercial and Foreign Banks located in India; Central, State, and urban and Central Co-Operative banks; regional rural Banks; and local Banks, provided that the bank has opted for DICGC cover.
- All the deposit of Bank are insured in Deposit Insurance Credit Guarantee Corporation (DICGC) and paid all the premium half yearly in every year.
- The Govt. of Odisha has constituted a Corpus Administration Deposit Guarantee Fund to safe guard the deposit mobilized by Primary Agriculture Cooperative Society (PACS). Again the deposit of PACS are covered under Bankers Indemnity Insurance.
