Deposit insurance and Deposit Insurance and Credit Guarantee Corporation of India

Deposit insurance and Deposit Insurance and Credit Guarantee Corporation of India – In India, deposit insurance is offered by DICGC which is fully owned by the RBI. Deposit insurance is mandatory for all banks. All bank deposits are covered under DICGC. The premium charged is on a flat rate basis which is 10 paise per Rs 100. The amount of coverage is presently limited to Rs one lakh. Deposit insurance constitutes an important element in preventing any runs on the banks due to unforeseen events. Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of Reserve Bank of India. Deposit insurance extended by DICGC covers all commercial banks, including Local Area Banks (LABs) and Regional Rural Banks (RRBs) in all the States and Union Territories (UTs). All Co-operative Banks across the country except three UTs of Lakshadweep, Chandigarh, and Dadra and Nagar Haveli are also covered by deposit insurance.