{"id":86359,"date":"2019-11-20T16:28:57","date_gmt":"2019-11-20T10:58:57","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=11750"},"modified":"2019-11-20T16:28:57","modified_gmt":"2019-11-20T10:58:57","slug":"explainedwhat-is-deposit-insurance","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explainedwhat-is-deposit-insurance\/","title":{"rendered":"Explained:What is deposit insurance?"},"content":{"rendered":"\n<p><strong>News:<\/strong>Recently,the failure of the Punjab and Maharashtra Co-operative(PMC) Bank has reignited the debate on the low level of insurance against the deposits held by customers in Indian banks.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>What is the insurance cover provided currently?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Currently,in case of a bank collapse,a depositor can claim an amount up to a maximum of \u20b9 1 lakh per account as the insurance cover(even if the deposit in their account is greater than \u20b91 lakh).&nbsp;<\/li><li>This amount is termed \u2018deposit insurance\u2019- the insurance cover against the deposits of an individual in banks.<\/li><li>The insurance cover is provided by the Deposit Insurance and Credit Guarantee Corporation(DICGC).<\/li><li>DICGC had last revised the deposit insurance cover to \u20b9 1 lakh in 1993, raising it from \u20b9 30,000 since 1980.But the protection cover of deposits in Indian banks through insurance is still among the lowest in the world.<\/li><\/ul>\n\n\n\n<p><strong>About DICGC:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of the Reserve Bank of India(RBI).<\/li><li>It was established in 1978 as a statutory body under Deposit Insurance and Credit Guarantee Corporation Act,1961.<\/li><li>The act provides for the establishment of a Corporation for the purpose of insurance of deposits and guaranteeing of credit facilities and for other matters connected therewith or incidental thereto.<\/li><li>The Deputy Governor of RBI acts as its Chairman of DICGC.It is headquartered in Mumbai.<\/li><\/ul>\n\n\n\n<p><strong>Which banks are insured by DICGC:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>DICGC provides insurance covers for all commercial banks, local area banks, regional rural banks and co-operative banks and branches of foreign banks in India.<\/li><li>However,the Primary cooperative societies, Non-banking financial companies(NBFCs) and mutual funds are not insured by the DICGC.<\/li><\/ul>\n\n\n\n<p><strong>Types of Deposits Covered:<\/strong>DICGC insures all bank deposits such as savings, fixed, current, recurring, etc except the following types of deposits.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Deposits of foreign Governments;<\/li><li>Deposits of Central\/State Governments;<\/li><li>Inter-bank deposits<\/li><li>Deposits of the State Land Development Banks with the State co-operative banks;<\/li><li>Any amount due on account of and deposit received outside India<\/li><li>Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:Recently,the failure of the Punjab and Maharashtra Co-operative(PMC) Bank has reignited the debate on the low level of insurance against the deposits held by customers in Indian banks. Facts: What is the insurance cover provided currently? Currently,in case of a bank collapse,a depositor can claim an amount up to a maximum of \u20b9 1 lakh&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/explainedwhat-is-deposit-insurance\/\">Continue reading <span class=\"screen-reader-text\">Explained:What is deposit insurance?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[310,3940],"class_list":["post-86359","post","type-post","status-publish","format-standard","hentry","category-economy","tag-deposit-insurance","tag-dicgc","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704957601},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86359"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86359\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}