Question
Download Solution PDFWhat is the current maximum deposit insurance limit per depositor under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is Rs 5 lakh.
In News
- DICGC currently provides deposit insurance coverage up to Rs 5 lakh per depositor across all deposits held in the same capacity in a bank.
- The limit was increased from Rs 1 lakh to Rs 5 lakh effective February 4, 2020, with government approval.
- Finance Minister Nirmala Sitharaman stated that DICGC may propose further enhancement of this limit considering its financial position and banking system interests.
Key Points
- Deposit insurance covers all types of deposits (savings, fixed, current, recurring) held in the same capacity.
- Coverage is aggregate across all branches of a single bank.
- The scheme includes commercial banks, small finance banks, payment banks, regional rural banks, and cooperative banks.
- DICGC insurance aims to protect depositors against bank failures.
- Any enhancement to the insurance limit requires government approval based on DICGC’s proposal.
Additional Information
- Deposit Insurance and Credit Guarantee Corporation (DICGC)
- Subsidiary of the Reserve Bank of India responsible for deposit insurance.
- Provides insurance to depositors in case of bank failure.
- Scope of Coverage
- Includes scheduled commercial banks, small finance banks, payment banks, and cooperative banks.
- All deposits in the same capacity in a bank are aggregated for insurance coverage.
- Previous Insurance Limit
- Before February 4, 2020, the limit was Rs 1 lakh.
- Proposal for Enhancement
- DICGC may propose raising the insurance limit further to the government based on its financial health.
Last updated on Jul 10, 2025
-> SBI has released the SBI CBO admit card 2025 for the online test that is going to be held on 20th July 2025 for the post of Circle Based Officer.
-> The SBI CBO Notification 2025 has been released on 9th May 2025 on the official website at sbi.co.in.
-> SBI has announced a total of 2964 Vacancies for the post of Circle Based Officers.
-> The applications for SBI CBO 2025 are being accepted from 9th May 2025 to 29th May 2025. All the interested candidates who fulfil the Credit bank officer eligibility criteria can apply.
-> The SBI CBO Selection Process comprises an Online Examination, Screening of Applications and an Interview.
-> The finally appointed candidates will receive a salary of Rs. 48,480–2000/7–62,480–2340/2–67,160–2680/7–85,920 applicable to Junior Management Grade Scale-I plus 2 advance increments.
-> Candidates can refer to SBI CBO Syllabus and Exam Pattern to boost their preparation and gain good score in the SBI Credit Bank Officer Exam.