Deposit Insurance (DICGC)

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, insures bank deposits — savings, current, fixed and recurring — up to a specified limit per depositor per bank, covering principal and interest together. If a bank fails or its licence is cancelled, depositors are paid up to this limit.

The cover applies per bank, so spreading large savings across multiple banks can increase total protected amount, and accounts in different ownership capacities (individual, joint, as guardian) may be treated separately. Most commercial and co-operative banks in India are covered.

Recent reforms have ensured faster payouts to depositors of stressed banks. DICGC insurance is a key reason small depositors can keep money in banks with confidence, though it underscores not concentrating very large sums in a single weak bank.