Fixed Deposit Insurance (DICGC)

To know about fixed deposit insurance first we need to understand about Corporation giving this service and its history.

  • History of Deposit insurance

This concept of insurance of deposits kept with banks received attention for the first time in year 1948 after the banking crisis is witnessed in Bengal. The issue came up for reconsideration again in the year 1949 but was held in abeyance till the RBI set up adequate arrangements for inspection of banks.

  • DICGC (Deposit Insurance and credit Guarantee Corporation)

DICGC is a wholly owned subsidiary of Reserve bank of India (RBI), established in 1978 with a purpose of providing insurance of deposits and guarantee of Credit facilities.

  • Scope/Coverage

Presently it insures all bank deposits, such as savings, fixed, current and recurring deposits upto max of ₹ 5,00,000/- of each deposit in a bank for both Principal & interest. If a customer has more than one account then each one carries insurance of 5 lac, however if a person has more than one account in same bank then those are treated as one account.

It is available to depositors or customers of bank free of cost, however banks have to pay its cost which is right now 0.10% of Deposit amount.


  • After PMC bank crisis It was proposed and under discussion to hike this insurance to ₹ 3 lakh from existing ₹ 1 lakh, same is only under initial discussion stage and will be hiked after discussion with Banks, RBI & DICGC. In Finance Budget 2020 same is hiked to 5 Lakh.

In 2019 DICGC collected ₹ 12,043 Cr as premium and settled ₹ 37 Cr worth claims.

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