DICGC Insures Up to ₹5 Lakh Per Depositor Per Bank
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- DICGC insures bank deposits up to ₹5 lakh per depositor per bank, covering both principal and interest across savings, fixed, current, and recurring accounts.
- All deposits held by a person in the same bank are aggregated for the ₹5 lakh cap, meaning total balance across savings, current, and fixed deposit accounts is treated as a single insured amount.
- Exclusions cover deposits of foreign governments, central or state governments, inter-bank deposits, state land development banks, deposits held outside India, and any amounts specifically exempted by the corporation with RBI approval.
- DICGC coverage extends to all commercial banks including foreign bank branches in India, local area banks, regional rural banks, and co-operative banks—but primary cooperative societies are not insured.
- Depositors with funds spread across multiple banks receive separate ₹5 lakh coverage at each institution, and joint account holders are each treated as individual depositors with their own cap.
- In liquidation, the liquidator prepares a depositor-wise claim list sent to DICGC for scrutiny and payment; during amalgamations or mergers, the insured amount is paid to the transferee bank.
Why it matters: Indian depositors holding more than ₹5 lakh in a single bank carry uninsured risk on the excess; spreading balances across multiple banks—each with its own ₹5 lakh DICGC cap—is the only stated path to multiplying coverage. Exclusions for government, inter-bank, and overseas deposits mean not every account balance qualifies for protection.
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