Deposit Insurance & Credit Guarantee Corporation of India – DICGC
- DICGC is a statutory Body.
- Established – 15 July 1978
- It is a subsidiary of RBI since 1962.
- Its control authority is governed by RBI.
- It was established under DICGC Act , 1961
- But it was introduced in India in 1962.
- In 1962 , India was the 2nd Country to Introduced with this Scheme.
- First Country who introduced DICGC is USA in 1933.
- Its prime purpose is to provide insurance of the deposited Money in all banks.
- It provide insurance facility for Saving deposit , Fixed deposit , Recurring deposit up to a maximum limit of Lakh for each separate deposits in a bank.
- After establishment of DICGC 287 banks were registered with it as insured banks.
- By the end of 1967, this number was gradually decreased to 100, (As a result of the Reserve Bank of India’s(RBIs) policy of the reconstruction and uniting of small and financially weak banks so as to make the banking sector more practicable & feasible.)
- In 1968, the DICGC Act 1962 was re-amended to extend deposit insurance to all co-operative banks in India.
- In 1968 there were more than 1000 cooperative banks as against the 83 commercial banks. As a result, the DICGC had to expand its operations very substantially.
- 1971 The Credit Guarantee Corporation of India Ltd. (CGCI) was established. (The establishment of the Credit Guarantee Corporation was to ensure that the credit needs of the neglected sectors and weaker sections were met. The essential concern was to persuade banks to make available credit to not so creditworthy clients).
Which banks are insured by the DICGC?
All commercial banks including branches of foreign banks functioning in India, local area banks & regional rural banks are insured by the DICGC.
What does the DICGC insure?
It insures all deposits such as savings, fixed, current, recurring, etc. except the following types of deposits:
(i) Deposits of foreign Govt.s;
(ii) Deposits of Central/State Govt.s;
(iii) Inter-bank deposits;
(iv) Deposits of the State Land Development Banks with the State co-operative bank;
(v) Any amount due on account of any deposit received outside India
(vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.
What is the maximum deposit amount insured by the DICGC?
Each depositor in a bank is insured upto a maximum of Rs.1,00,000 for both principal & interest amount held by
him in the same capacity