Insurance of bank deposits

·       Deposit Insurance and Credit Guarantee Corporation (DICGC) was set up by RBI with the intention of insuring the deposits of individuals.

·       All commercial banks, including branches of foreign banks operating in India, and Regional Rural Banks.

·       Co-operative banks are also eligible.

·       The insurance scheme covers savings account, current account, term deposits and recurring accounts. However, the following deposits are not covered by the scheme:

o   Deposit of Central / State Government

o   Deposit of foreign governments

o   Inter-bank deposits

o   Deposits received outside India.

·       In order for depositors in a bank to benefit from the insurance scheme, the bank should have paid DICGC the specified insurance premium (10 paise per annum per Rs. 100 of deposit).