● It came into existence in 1978 after the merger of Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI) after passing of DICGC Act, 1961 by the Parliament
● It serves as a deposit insurance and credit guarantee for banks in India.
● It is a fully owned subsidiary of and is governed by the Reserve Bank of India (RBI).
● Currently, a depositor has a claim to a maximum of Rs 5 lakh (previously 1 lakh) as insurance cover
● Banks pay advance insurance premiums to the corporation and not by customers of banks.
● Premium for the insurance has been raised from 10 paise for every Rs 100 deposit, to 12 paise recently, and a limit of 15 paise has been imposed.
● Banks, including Regional Rural Banks, Local area banks, Foreign banks with branches in India, and Cooperative banks, are mandated to take deposit insurance cover with the DICGC.
● Types of Deposits Covered:
» All bank deposits, such as saving, fixed, current, recurring, etc.
Except the following types of deposits
»Deposits of foreign Governments, Central/State Governments, Inter-bank deposits, Deposits of the State Land Development Banks with the State co-operative banks
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