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Insurance for Bank Deposits
January 2 , 2020
1662 days
1117
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- The finance ministry and the Insurance Regulatory and Development Authority (IRDAI) have recommended an insurance cover for bank accounts with deposits above Rs 1 lakh.
- At present, the Deposit Insurance and Credit Guarantee Corporation (DICGC) covers only deposits of Rs 1 lakh and below.
- Deposit insurance is providing insurance protection to the depositor’s money by receiving a premium.
About DICGC
- The government has set up DICGC under RBI to protect depositors if a bank fails.
- Every insured bank pays premium amounting to 0.001% of its deposits to DICGC every year.
- When a bank is liquidated, depositors are entitled to receive an insurance amount of ₹1 lakh per individual from the DICGC.
- The DICGC does not deal directly with depositors.
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