Definition
DICGC
DICGC is the Deposit Insurance and Credit Guarantee Corporation, an RBI subsidiary that insures bank deposits up to a specified limit per depositor.
The DICGC protects small depositors by insuring deposits in banks up to a fixed limit per depositor per bank, covering savings, current, fixed and recurring deposits. If a bank fails, eligible depositors are paid up to that limit, with rules now mandating faster interim payouts.
Banks pay a premium for this cover, which underpins public confidence in the banking system. The insurance limit has been raised over time, and the corporation's role became especially visible during episodes of cooperative bank stress.
Related terms
- Reserve Bank of India (RBI)The RBI is India's central bank and monetary authority, responsible for issuing currency, setting policy rates, regulating banks and managing the government's debt.
- NABARDNABARD is the National Bank for Agriculture and Rural Development, the apex development financial institution for agriculture and the rural economy.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.