DICGC Deposit Insurance
Definition
Deposit insurance from the DICGC (an RBI subsidiary) covering bank deposits up to ₹5 lakh per depositor per bank, including principal and interest; NBFC deposits are not covered.The Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the RBI, insures deposits held with insured banks up to ₹5,00,000 per depositor per bank — covering both principal and interest, for deposits held in the same right and capacity. The cover is per bank (all your accounts at one bank are aggregated), not per account, so deposits across different banks each get a separate ₹5 lakh cover. Savings, fixed, current and recurring deposits are covered; NBFC and company deposits are not. If an insured bank is liquidated, the DICGC pays the insured amount to the liquidator within two months of the claim list.
Related guides
Related terms
- Fixed Deposit (FD) — A deposit that locks a sum with a bank for a fixed term at a pre-agreed interest rate.
- Senior Citizen FD — A fixed deposit that pays resident individuals aged 60+ a higher interest rate (commonly about 0.50% more); same DICGC cover and taxation as a regular FD, with extra tax relief.
- Recurring Deposit (RD) — A deposit where a fixed amount is paid in every month for a set term at a fixed rate.
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