FinanceLane
  • Funding
    • Equity Funding
    • Debt Funding
    • Crowdfunding
    • Real Estate Funding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Commodities
    • Forex
    • Private Equity
    • Real Estate
    • Crypto Investing
  • Lending
    • Personal Loan
    • Business Loan
    • Mortgage
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Health Insurance
    • Auto Insurance
    • Education Insurance
    • General Insurance
  • Banking
    • Individual Banking
    • Business Banking
    • Investment Banking
    • Neo Banking
    • Payments Bank
  • Crypto
    • Crypto Coins
    • Crypto Trading
    • Bitcoin
    • Blockchain
    • DAPP
    • Crypto Investing
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Payments
    • Digital Banks
    • Alternative Financing
    • Asset Management
    • Softwares
  • Venture
    • Startup Ecosystem
    • Merging & Acquisition
    • Equity Investing
    • Franchising
    • Business Offers
  • Login
No Result
View All Result
  • Earning
  • Savings
  • Investments
  • Budgetting
  • Credit Management
  • Tax Planning
  • Retirement
  • Advisory Lane
FinanceLane
Home News Feed Advisory

What is insured under deposit insurance if a bank fails, are deposits in different banks separately insured?

FinanceLanebyFinanceLane
June 17, 2022
in Advisory, Investments, News Feed, Savings, Tax Planning, Wealth
Reading Time: 6 mins read
, ET Online|

17 Jun 2022, 01:44 PM IST

1/8

Protection against failure

When a bank fails, the only respite a depositor has is the insurance cover offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). The insurance cover under DICGC was raised to Rs 5 lakh from Rs 1 lakh, effective from February 4, 2020. Savings accounts, fixed deposits (FD), current accounts, recurring deposits (RD), and other deposits are covered by DICGC’s insurance.
Bank customers should note these important FAQs from the DICGC website.

Getty Images

Which banks are insured by the DICGC?

2/8

Which banks are insured by the DICGC?

Commercial Banks : All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.Cooperative Banks : All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme. At present all co-operative banks are covered by the DICGC.

Getty Images

What does the DICGC insure?

3/8

What does the DICGC insure?

The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of depositsDeposits of foreign Governments;Deposits of Central/State Governments;Inter-bank deposits;Deposits of the State Land Development Banks with the State co-operative bank;Any amount due on account of and deposit received outside IndiaAny amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India

Getty Images

What is the maximum deposit amount insured by the DICGC?

4/8

What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured upto a maximum of 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

Getty Images

Does the DICGC insure just the principal on an account or both principal and accrued interest?

5/8

Does the DICGC insure just the principal on an account or both principal and accrued interest?

The DICGC insures principal and interest upto a maximum amount of five lakhs. For example, if an individual had an account with a principal amount of 4,95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 4,99,000. If, however, the principal amount in that account was five lakhs, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.

Getty Images

Are deposits in different banks separately insured?

6/8

Are deposits in different banks separately insured?

Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank. If I have my funds on deposit at two different banks, and those two banks are closed on the same day, are my funds added together, or insured separately?Your funds from each bank would be insured separately, regardless of the date of closure.

Getty Images

When is DICGC liable to pay?

7/8

When is DICGC liable to pay?

If a bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor upto Rupees five lakhs within two months from the date of receipt of claim list from the liquidator. The liquidator has to disburse the claim amount to each insured depositor corresponding to their claim amount.”If a bank is reconstructed or amalgamated / merged with another bank: The DICGC pays the bank concerned, the difference between the full amount of deposit or the limit of insurance cover in force at the time, whichever is less and the amount received by him under the reconstruction / amalgamation scheme within two months from the date of receipt of claim list from the transferee bank / Chief Executive Officer of the insured bank/transferee bank as the case may be.”

Getty Images

How will you know whether your bank is insured by the DICGC or not?

8/8

How will you know whether your bank is insured by the DICGC or not?

The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the branch official in this regard.

Getty Images

Read more on

Source Link

Related Topics

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Prev Next

You May Like

Blockchain

Opensea Opens Bulk NFT Listings & Purchases for Users

Bitcoin

Bitcoin’s Lightning Network Capacity Crosses 5,000 BTC Benchmark

Advisory

Bank FDs vs post office term deposit: Which offers senior citizens higher interest rate for short term

Blockchain

Crypto.com Offers Google Pay and Apple Pay Support for Canadian Users

Blockchain News

Coinbase Introduces PayID and Premium Services for Aussie Retail Customers

Blockchain News

Yuga Labs Sets Up BAYC Community Council to Boost Innovations

Advisory

Central govt employees: General Provident Fund (GPF), CPF interest rates announced for Oct-Dec 2022 quarter

Bitcoin

Bitcoin Crosses $20K Mark, as Whales Continue to Accumulate Tokens

Financial News

Advisory

How many times you can update Aadhaar details

FinanceLane
by FinanceLane
Advisory

5 foreign holiday spots at Rs 2 lakh

FinanceLane
by FinanceLane
Bitcoin

Financial Services Company Plaid Integrates Crypto Exchange Data

Blockchain
by Blockchain
Advisory

PNB increases home loan interest rates after RBI’s repo rate hike

FinanceLane
by FinanceLane
Advisory

Lost life insurance policy? Read this

FinanceLane
by FinanceLane
Bitcoin

Panama Congress Passes Crypto Regulation Bill

Blockchain
by Blockchain
Blockchain

US House Committee Chairman Seeks Insights into Crypto Retirement Plans

Blockchain
by Blockchain
Blockchain

Proposal to Burn 1.3bn UST Tokens Wins Approval from Terra Governance

Blockchain
by Blockchain
Advisory

Federal Bank announces higher interest rates on NRE FDs: Check dates of 8-day window

FinanceLane
by FinanceLane
Bitcoin

Crypto Exchange Volumes Sees Growth since May, Jumped to $733 billion in Sep

Blockchain
by Blockchain
Blockchain News

FDIC Says Deposits and Cryptos at Non-Bank Entities Are Uninsured

Blockchain
by Blockchain
Bitcoin

Singapore’s FOMO Pay Introduces New Crypto Payment Solution for Retailers

Blockchain
by Blockchain
Load More
FinanceLane.com
  • Disclaimer
  • Privacy Policy
  • Terms of use
  • Subscribe
  • Contact

Subscribe to get the latest updates

Follow us on

© 2022 FinanceLane.com. All rights reserved.

  • Home
  • Funding
    • Equity Funding
    • Debt Funding
    • Real Estate Funding
    • Crowdfunding
  • Investing
    • Stocks
    • Bonds
    • Mutual Funds
    • Private Equity
    • Merging & Acquisition
    • Real Estate
  • Lending
    • Personal Loan
    • Business Loan
    • Credit Card
    • Microfinance
    • Peer-to-Peer Lending
  • Insurance
    • Life Insurance
    • Auto Insurance
    • Education Insurance
    • Health Insurance
  • Banking
    • Business Banking
    • Payments Bank
    • Investment Banking
    • Individual Banking
  • Wealth
    • Earning
    • Savings
    • Investments
    • Budgetting
    • Credit Management
    • Tax Planning
    • Retirement
  • Fintech
    • Alternative Financing
    • Payments
    • Asset Management
    • Digital Banks
    • Softwares
  • Fintech
    • Alternative Financing
    • Asset Management
    • Digital Banks
    • Softwares
    • Payments
  • Crypto
    • Crypto Investing
    • Crypto Trading
    • Crypto Coins
    • Bitcoin
    • Blockchain
    • DAPP
  • Subscribe
  • Contact
  • Login

© 2022 FinanceLane - Terms and Conditions | Disclaimer | Privacy Policy

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.