Deposit Schemes Deposit Schemes

Deposit Insurance (DICGC)

For Depositers a guide to deposit insurance (DICGC)

Frequently Asked Questions

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 Cooperative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme. At present all Cooperative banks other than those from the State of Meghalaya and the Union Territories of Chandigarh, Lakshadweep and Dadra and Nagar Haveli are covered by the DICGC.

The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits.

  1. Deposits of foreign Governments;

  2. Deposits of Central/State Governments;

  3. Inter-bank deposits;

  4. Deposits of the State Land Development Banks with the State Cooperative bank;

  5. Any amount due on account of and deposit received outside India;

  6. Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.

Each depositor in a bank is insured up to a maximum of Rs.1,00,000 (Rupees One Lakh) 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 license or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

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.

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

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

All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be 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 an individual opens more than one deposit account in one or more branches of a bank for example, Shri S.K. Pandit opens one or more savings/current account and one or more fixed/recurring deposit accounts etc., all these are considered as accounts held in the same capacity and in the same right. Therefore, the balances in all these accounts are aggregated and insurance cover is available up to rupees one lakh in maximum.

If Shri S.K. Pandit also opens other deposit accounts in his capacity as a partner of a firm or guardian of a minor or director of a company or trustee of a trust or a joint account, say with his wife Smt. K. A. Pandit, in one or more branches of the bank then such accounts are considered as held in different capacity and different right. Accordingly, such deposits accounts will also enjoy the insurance cover up to rupees one lakh separately.

It is further clarified that the deposit held in the name of the proprietary concern where a depositor is the sole proprietor and the amount of Deposit held in his individual capacity are aggregated and insurance cover is available up to rupees one lakh in maximum.



Savings A/C

Current A/C


Total Deposits

Deposits Insured up to

Shri S. K. Pandit (Individual)






Shri S. K. Pandit
(Partner of ABC & Co.)





Shri S. K. Pandit
(Guardian for Master Ajit)





Shri S. K. Pandit
(Director, J.K. Udyog Ltd.)





Shri S. K. Pandit
jointly with
Smt. K. A. Pandit






Deposits held in joint accounts (revised w.e.f. April 26, 2007)

If more than one deposit accounts (Savings, Current, Recurring or Fixed deposit) are jointly held by individuals in one or more branch of a bank say three individuals A, B & C hold more than one joint deposit accounts in which their names appear in the same order then all these accounts are considered as held in the same capacity and in the same right. Accordingly, balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of Rs. 1 lakh.

However, if individuals open more than one joint accounts in which their names are not in the same order for example, A, B and C; C, B and A; C, A and B; A, C and B; or group of persons are different say A, B and C and A, B and D etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately up to rupees one lakh to every such joint account where the names appearing in different order or names are different.


Account (i)
Savings or CurrentA/C

First a/c holder- "A"
Second a/c holder - "B"

Maximum insured amount upto Rs.1 lakh


First a/c holder - "A"
Second a/c holder - "C"

Maximum insured amount upto Rs.1 lakh

Account (iii)

First a/c holder - "B"
Second a/c holder - "A"

Maximum insured amount upto Rs.1 lakh

Account (iv)
at Branch 'X' of the bank

First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"

Maximum insured amount upto Rs.1 lakh

Account (v)

First a/c holder - "B"
Second a/c holder - "C"
Third a/c holder - "A"

Maximum insured amount upto Rs.1 lakh

Account (vi)
Recurring or Fixed Deposit

First a/c holder - "A"
Second a/c holder - "B"

The account will be clubbed with the a/c at (i)

Account (vii) At Branch 'Y' of the bank

First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"

The account will be clubbed with the a/c at (iv)

Account (viii)

First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "D"

Maximum insured amount upto Rs.1 lakh

Yes. Banks have the right to set off their dues from the amount of deposits. The deposit insurance is available after netting of such dues.

Deposit insurance premium is borne entirely by the insured bank.

If a bank goes into liquidation: The DICGC is liable to pay to each depositor through the liquidator, the amount of his deposit up to Rupees one lakh within two months from the date of receipt of claim list from the liquidator.

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.

No. In the event of a bank's liquidation, the liquidator prepares depositor wise claim list and sends it to the DICGC for scrutiny and payment. The DICGC pays the money to the liquidator who is liable to pay to the depositors. In the case of amalgamation / merger of banks, the amount due to each depositor is paid to the transferee bank.

No. The deposit insurance scheme is compulsory and no bank can withdraw from it.

The Corporation may cancel the registration of an insured bank if it fails to pay the premium for three consecutive periods. In the event of the DICGC withdrawing its coverage from any bank for default in the payment of premium the public will be notified through newspapers.

Registration of an insured bank stands cancelled if the bank is prohibited from receiving fresh deposits; or its license is cancelled or a license is refused to it by the RBI; or it is wound up either voluntarily or compulsorily; or it ceases to be a banking company or a Cooperative bank within the meaning of Section 36A(2) of the Banking Regulation Act, 1949; or it has transferred all its deposit liabilities to any other institution; or it is amalgamated with any other bank or a scheme of compromise or arrangement or of reconstruction has been sanctioned by a competent authority and the said scheme does not permit acceptance of fresh deposits. In the event of the cancellation of registration of a bank, deposits of the bank remain covered by the insurance till the date of the cancellation.

The Corporation has deposit insurance liability on liquidation etc. of "Insured banks" i.e. banks which have been de-registered,

(a) on account of prohibition on receiving fresh deposits or
(b) on cancellation of license or it is found that license can not be granted. The liability of the Corporation in these cases is limited to the extent of deposits as on the date of cancellation of registration of bank as an insured bank.

On liquidation etc. of other de-registered banks i.e. banks which have been de-registered on other grounds such as non payment of premium or their ceasing to be eligible Cooperative banks under section 2(gg) of the DICGC Act, 1961, the Corporation will have no liability.

The acronym 'RTGS' stands for Real Time Gross Settlement, which can be defined as the continuous (real-time) settlement of funds transfers individually on an order by order basis (without netting). 'Real Time' means the processing of instructions at the time they are received rather than at some later time; 'Gross Settlement' means the settlement of funds transfer instructions occurs individually (on an instruction by instruction basis). Considering that the funds settlement takes place in the books of the Reserve Bank of India, the payments are final and irrevocable.

NEFT is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place with all transactions received till the particular cut-off time. These transactions are netted (payable and receivables) in NEFT whereas in RTGS the transactions are settled individually. For example, currently, NEFT operates in hourly batches. [There are twelve settlements from 8 am to 7 pm on week days and six settlements from 8 am to 1 pm on Saturdays.] Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time Contrary to this, in the RTGS transactions are processed continuously throughout the RTGS business hours.

Is there any minimum / maximum amount stipulation for RTGS transactions ?

The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is Rs. 2 Lakh. There is no upper ceiling for RTGS transactions.

Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message.

Yes. Funds, received by a RTGS member for the credit to a beneficiary customer's account, will be returned to the originating RTGS member within two hours of the receipt of the payment at the PI of the recipient bank or before the end of the RTGS Business day, whichever is earlier, if it is not possible to credit the funds to the beneficiary customer's account for any reason e.g. account does not exist, account frozen, etc. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed.

The remitting customer has to furnish the following information to a bank for initiating a RTGS remittance:

  1. Amount to be remitted

  2. Remitting customer's account number which is to be debited.

  3. The IFSC Number of the receiving branch.

  4. Name of the beneficiary bank and branch.

  5. Name of the beneficiary customer.

  6. Account number of the beneficiary customer.

  7. Sender to receiver information, if any

The beneficiary customer can obtain the IFSC code from his bank branch. The IFSC code is also available on the cheque leaf. The list of IFSCs is also available on the RBI website ( ) This code number and bank branch details can be communicated by the beneficiary to the remitting customer. OR by searching the Internet e.g. Google etc.

No. All the bank branches in India are not RTGS enabled. Presently, there are more than 100000 RTGS enabled bank branches. The list of such branches is available on RBI website at:


Information given above is to convey the basic provisions of the deposit insurance scheme of the Corporation. The information is of a non-technical nature and is not intended to be a legal interpretation of the deposit insurance scheme.

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