Savings

DICGC

Last updated: July 2026 Reviewed & verified by Galvin Mendonca

Definition

Deposit Insurance and Credit Guarantee Corporation. RBI subsidiary insuring bank deposits up to ₹5 Lakhs per bank.

Key Takeaways

  • DICGC is an RBI subsidiary providing deposit insurance for all Indian bank accounts.
  • Insures up to a maximum of ₹5 Lakhs per depositor, per bank for principal and interest combined.
  • Covers savings, current, recurring, and fixed deposits.
  • Accounts at different banks are insured independently up to the ₹5 Lakh limit.

Detailed Explanation

The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides insurance coverage for bank deposits in India, securing depositors' savings in the event of a bank failure or liquidation.

DICGC insures all bank deposits, including savings accounts, fixed deposits (FDs), current accounts, and recurring deposits. The insurance coverage limit is capped at a maximum of ₹500,000 per depositor, per bank. This limit covers both the principal and interest amounts combined. If you hold accounts in different branches of the same bank, they are aggregated, but accounts in different banks are covered separately.

Real-World Example If Rajesh holds a savings account with a balance of ₹3,00,000 and a fixed deposit of ₹3,00,000 in the same bank, his total balance of ₹6,00,000 exceeds the DICGC coverage. If the bank fails, Rajesh is guaranteed to receive only the insured limit of ₹5,00,000.

Disclaimer: Definitions and explanations on this glossary page are provided strictly for general educational and informational purposes. They do not constitute formal financial, investment, legal, or tax advice. Financial regulations, caps, and limits change frequently. Always consult a qualified professional before making any financial decisions.
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