DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION OF INDIA
(DICGC)
Introduction:
DICGC is the Fully owned
subsidiary of RBI. 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.
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
currently Shri N.S.Vishwanathan. The Head Office of the Corporation
is at Mumbai.
Deposit Insurance
Banks covered by Deposit
Insurance Scheme.
- All commercial banks, Local Area
Banks, and Regional Rural Banks.
- Co-operative Bank
Types of Deposits Covered
DICGC insures all bank
deposits, such as saving, fixed, current, and recurring, etc. except the
following types of deposits.
- Deposits of foreign Governments
- Deposits of Central/State
Governments
- Inter-bank deposits
- Deposits of the State Land
Development Banks with the State co-operative banks
- Any amount due on account of and
deposit received outside India
- Any amount which has been
specifically exempted by the corporation with the previous approval of the
RBI.
Insurance Premium:
- The premium paid by the insured
banks to the Corporation is bear by the banks themselves.
- The formula for working out the
half-yearly premium is as follows: –
- Deposits in rupees rounded to
thousands X 0.05 / 100
- The deposits should be rounded
off to the nearest thousand Rupees.
