Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI). It is established by ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’ which came into force on January 1, 1962. It is a wholly-owned subsidiary of the RBI and providing deposit insurance is one of the functions of DICGC since 1962.
One of the most important functions of DICGC is to provide insurance to the deposits in banks. About 92 per cent of deposit accounts of the entire banking system are fully protected under DICGC involving 28 per cent of the entire deposit amount of ₹120 lakh crore
Banks covered by Deposit Insurance Scheme are:
DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits:
Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
The authorized capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI). The management of the Corporation vests with its Board of Directors, of which a Deputy Governor of the RBI is the Chairman, Current chairman of DICGC is Shri N S Vishwanathan (Deputy Governor of RBI).
The Head Office of the DICGC is at Mumbai.
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