Deposit Insurance and Credit Guarantee Corporation

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Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India. It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.[1]

Legal Framework/Objective[edit]

The functions of the DICGC (deposit insurance and credit guarantee corporation)are governed by the provisions of 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the said Act.[2]

A maximum of Rs 1,00,000 is insured for each user for both principal and interest amount. If the customer has accounts in different banks, they all account are insured to a maximum of Rs 1,00,000. However, if there are more accounts in same bank, they all are treated as a single account. The insurance premium is paid by the insured banks itself. This means that the benefit of deposit insurance protection is made available to the depositors or customers of banks free of cost. The Corporation has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half-year periods. The Corporation may restore the registration of the bank, which has been de-registered for non-payment of premium, if the concerned bank makes a request in this behalf and pays all the amounts due by way of premium from the date of default together with interest.


  1. ^ "Srikrishna panel insists on single unified regulator in financial sector". Business Standard. 2013-03-21. Retrieved 2013-11-23. 
  2. ^ "About Us - Profile". ..Dicgc. Retrieved 2013-11-23. 

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