Deposit insurance
Also called: DICGC cover, DICGC insurance
Insurance that repays bank depositors up to a limit if a bank fails. In India it is provided by the DICGC, a subsidiary of the RBI.
The Deposit Insurance and Credit Guarantee Corporation insures deposits in banks, including savings accounts and fixed deposits, up to a limit per depositor for deposits held in the same capacity across all branches of the same bank.
It protects against a bank failing, not against inflation, and it does not cover deposits with non-banking financial companies, shares or mutual funds.
Example
Someone with ₹3 lakh in a savings account and ₹4 lakh in a fixed deposit at the same bank, in the same name, is insured up to the overall limit, not for each account separately.
Learn more in these lessons
- Saving, investing and inflationWhat is the difference between saving and investing?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.