Measures taken by Govt. to protect the interest of investors/account holders in bank



Quick Summary
The Indian government is implementing measures to safeguard investors and account holders in banks. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, insures all types of bank deposits, including savings, fixed, and current accounts, along with accrued interest. The insurance limit was increased to ₹5 lakh per depositor in February 2020, ensuring that approximately 97.9% of accounts were fully protected by March 2022. Furthermore, a new provision allows for interim payments to depositors within 90 days, up to the insured limit, if a bank faces restrictions.

A number of steps are being taken by the Government to protect the interests of the investors/account holders in the bank. This was stated by Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha. The Minister further stated that the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly- owned subsidiary of the Reserve Bank of India (RBI), provides insurance for bank deposits: DICGC insures all deposits such as sa
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FAQ :

The government is ensuring protection through the Deposit Insurance and Credit Guarantee Corporation (DICGC), which insures bank deposits.

DICGC insures all deposits, including savings, fixed, current, and recurring accounts, along with any accrued interest.

The deposit insurance limit has been raised to ₹5 lakh per depositor, effective from February 4, 2020.

As of March 2022, approximately 97.9% of total accounts were fully protected by the deposit insurance cover.

If a bank faces restrictions, DICGC is liable to make interim payments to depositors up to the ₹5 lakh insurance cover within 90 days.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), provides deposit insurance.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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