DICGC Cover. Student

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Can any one explain me what is DICGC cover in banking sector.

Replies (4)

Banks are compulsorily required to get their deposits insured from Deposit Insurance and Credit Guarantee Corporation (DICGC).   However, DICGC at present insures deposits only upto Rs.1 lakh.   Thus, deposits in banks upto Rs.1 lakhs are safe and secure from the default by the bank.

Check out these links. You will get lots of information here.

https://www.rupeebank.com/inscov.htm

https://www.dicgc.org.in/English/FD_A-GuideToDepositInsurance.html

https://www.allbankingsolutions.com/depsub4.htm

But for all bank or only for nationalised bank.

Check out this answer in second link.

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 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.

Primary cooperative societies are not insured by the DICGC.

thanks for sharing

valuable information


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