DICGC
About DICGC
- Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of the RBI, created by an act of parliament in 1961.
- DICGC provides insurance cover on bank deposits. The idea behind the DICGC is to boost the faith of the public in the banking system, and provide protection against the loss of deposits to a significant extent.
- The DICGC insures principal and interest upto a maximum amount of Rs 5 lakh.
- The Rs 5-lakh deposit insurance cover addresses 98.3 per cent of all deposit accounts by number, and 50.9 per cent of deposits by value. Globally, deposit insurance coverage is only 80 per cent and it covers only 20-30 per cent of deposit value.
- Banks covered by Deposit Insurance Scheme: All commercial banks, Local Area Banks, Regional Rural Banks and Co-operative Banks (Primary cooperative societies are not insured by the DICGC).
- Deposit insurance facility of DICGC is not available to depositors of NBFCs.
Why in News?
- The Deposit Insurance and Credit Guarantee Corporation (DICGC) has released details of claims cleared by the corporation.
reference:
Tag:Economy
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