Deposit Insurance by DICGC
Who is covered, what is insured, the ₹5 lakh limit, the 90-day interim payment rule and what is excluded.
Key points
- DICGC (Deposit Insurance and Credit Guarantee Corporation) is a wholly owned subsidiary of RBI.
- Each depositor is insured up to ₹5 lakh for principal and interest together, per bank, in the same right and capacity (limit in force since 4 February 2020).
- Covers savings, fixed, current and recurring deposits.
- Premium is paid by the bank, not by the depositor.
- Under the 2021 amendment, depositors of a bank placed under restrictions get up to ₹5 lakh within 90 days.
Purpose
Deposit insurance protects small depositors if a bank fails or is placed under restrictions, and supports public confidence in the banking system. By value of accounts, the ₹5 lakh cover fully protects the large majority of individual depositors.
Banks covered
All commercial banks including branches of foreign banks in India, local area banks, small finance banks, payments banks, regional rural banks and co-operative banks are insured by DICGC. Registration is compulsory.
How the ₹5 lakh limit is applied
- The limit applies to all deposits a person holds in the same capacity and same right in one bank, across all its branches.
- Deposits in different capacities are insured separately – for example, an individual account, a joint account with another person, and an account as a partner of a firm are treated as different capacities.
- Deposits in different banks are insured separately, each up to ₹5 lakh.
What is not insured
- Deposits of foreign governments.
- Deposits of the Central and State Governments.
- Inter-bank deposits.
- Deposits of a State Land Development Bank with the State Co-operative Bank.
- Amounts due on account of deposits received outside India.
- Any amount specifically exempted by DICGC with RBI's previous approval.
The 90-day rule (DICGC Amendment Act, 2021)
| Step | Timeline |
|---|---|
| Bank placed under "All Inclusive Directions" (restrictions) by RBI | Day 0 |
| Bank collects and submits depositor-wise claims to DICGC | Within 45 days |
| DICGC verifies claims | Within the next 30 days |
| Payment to depositors | Within 90 days of Day 0 |
Premium
The insured bank pays the premium to DICGC; it cannot be recovered from depositors. The rate has been 12 paise per ₹100 of assessable deposits per annum since 2020.
Recent discussion
As of October 2026 the limit remains ₹5 lakh. A higher limit has been discussed by the Government; branch staff should check DICGC's website for any notification before quoting a different figure to customers.