By K. Ramesh Kumar, Lawyer | Educator
This article is written by: K. Ramesh Kumar – Lawyer | Educator (WhatsApp 79091 92466). Disclaimer: This article is only for general awareness. This is not legal or financial advice.
You can visit the official websites of RBI or DICGC for details.
- Which Banks Are Insured by the DICGC?
- All commercial banks (including foreign bank branches), local area banks, and regional rural banks.
- Coverage also extends to all State, Central, and Primary cooperative banks, excluding primary cooperative societies.
- What Does the DICGC Insure?
- It insures deposits like savings, fixed, current, and recurring deposits.
- Excludes foreign and government entity deposits, inter-bank deposits, certain cooperative bank deposits, and amounts exempted by RBI.
- How Much Does DICGC Insure?
- The insurance covers up to ₹5,00,000 (principal + interest) per depositor per bank.
- How to Check if Your Bank is Insured?
- Banks display DICGC leaflets with insurance details. You can also enquire with branch officials if in doubt.
- Is Insurance Provided for Deposits at Different Branches?
- Yes, deposits across branches of the same bank are aggregated for insurance, up to ₹5,00,000.
- Does DICGC Insure Both Principal and Interest?
- Yes, it covers both principal and interest up to ₹5,00,000.
- Can You Increase Insurance by Depositing in Multiple Accounts?
- No, funds in the same ownership at the same bank are aggregated. Separate ownership or different banks are insured separately.
- Are Deposits in Different Banks Insured Separately?
- Yes, deposits at different banks are insured separately.
- What Happens if Two Banks Close on the Same Day?
- Funds at each bank are insured separately, regardless of the closure date.
- Insurance for Joint Accounts
- If joint account holders’ names appear in the same order, deposits are aggregated. If the names differ, they are separately insured.
- Can a Bank Withdraw from DICGC Coverage?
- No, the DICGC scheme is mandatory. However, coverage can be withdrawn if the bank defaults on premiums or is liquidated.
- How Can You Maximize DICGC Coverage for Large Deposits?
- Split deposits across multiple banks to ensure each ₹5 lakh is fully covered.
- Diversify account types (e.g., individual, joint) within the same bank for separate insurance coverage.
By understanding these key points, you can effectively ensure the safety of your deposits under the DICGC scheme!