Sukra - Personal Finance

India is the second country in the world to insure deposits. The Deposit Insurance Corporation (DIC) was started in 1962 by Reserve Bank of India. In 1971 Credit Gurantee corporation of India (CGCI) was established. In 1978 DIC & CGCI were merged to form the Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a wholly owned subsidary of Reserve Bank. The deposit insurance system in India is subject to the Provisions of Deposit Insurance Act

Deposits & Accounts :-

All deposits such as Savings Account , Fixed Deposit, Current Account and Recurring Deposits are insured.

Deposits in all banks (even cooperative and private sector banks) in India are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC).

Amount of Coverage ( Protection ) :-

Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest.

The deposits kept in different accounts and different branches of the same bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid.

If an individual opens more than one deposit account in one or more branches of the same bank, then the balances in all these accounts are aggregated and insurance cover is available upto rupees one lakh in maximum.

For more information - A Guide to Deposit Insurance in India FAQ