DICGC stands for Deposit Insurance and Credit Guarantee Corporation. It is an organisation that protects bank depositors in India by providing insurance on their deposits.
In simple terms, even if a bank collapses, depositors do not lose all their money. This system helps maintain public trust in the country’s banking structure.
DICGC Full Form and its Purpose
The DICGC full form clearly explains its dual function: Deposit Insurance and Credit Guarantee.
It works under the Reserve Bank of India (RBI) and provides insurance to deposits held in commercial banks, cooperative banks and regional rural banks.
Its main goal is to ensure that customers’ money remains safe and secure even in the case of a bank failure.
When was DICGC established?
The DICGC's established date goes back to 1961. It was formed under the Deposit Insurance and Credit Guarantee Corporation Act.
Since its creation, DICGC has played an essential role in strengthening the financial safety net for depositors and boosting confidence in the Indian banking system.
Understanding the DICGC Limit
The current DICGC limit is ₹5 lakh per depositor per bank. This means that if you have multiple types of deposits, like savings, current, fixed, or recurring, at one bank, the total insured amount is ₹5 lakh, including both principal and interest.
Example: If a customer has ₹3 lakh in a savings account and ₹3 lakh in a fixed deposit at the same bank, DICGC will pay only ₹5 lakh in case the bank fails. However, deposits held in another bank will be insured separately up to the same limit.
Role of DICGC Insurance
DICGC insurance acts as a financial safeguard for individuals. It helps prevent panic withdrawals and keeps the banking system stable.
By ensuring depositor protection, DICGC promotes financial discipline and long-term stability in India’s economy.
DICGC serves as a reliable safety net by protecting the hard-earned savings of millions of Indians.
