View source for Deposit Insurance and Credit Guarantee Corporation

{{short description|RBI subsidiary}}
{{Use dmy dates|date=October 2015}}
{{Use Indian English|date=October 2015}}
{{Infobox government agency
| name = Deposit Insurance and Credit Guarantee Corporation
| native_name = <!--निक्षेप बीमा और प्रत्यय गारंटी निगम-->
| native_name_a = 
| native_name_r = 
| type = [[Reserve Bank of India|Reserve Bank of India (Specialised Division)]]
| seal = 
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| logo = 
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| formed = {{Start date and age|1978}}
| preceding1 = 
| preceding2 = <!-- up to |preceding6= -->
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| jurisdiction = [[Reserve Bank of India]], [[Ministry of Finance (India)|Ministry of Finance]], [[Government of India]]
| headquarters = [[Mumbai]], [[India]]
| coordinates = <!-- {{coord|LATITUDE|LONGITUDE|type:landmark_region:US|display=inline,title}} -->
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| chief1_name = M.D. Patra
| chief1_position = Deputy Governor of [[Reserve Bank of India|RBI]]
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| keydocument1 = The Deposit Insurance and Credit Guarantee Corporation Act, 1961
| website = {{URL|www.dicgc.org.in}}
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The '''Deposit Insurance and Credit Guarantee Corporation''' ('''DICGC''') is a [[Division (business)|specialised division]] of the [[Reserve Bank of India]] which is under the [[jurisdiction]] of the [[Ministry of Finance (India)|Ministry of Finance]], [[Government of India]]. It was established on 15 July 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing [[Deposit insurance|insurance of deposits]] and guaranteeing of credit facilities. 

The DICGC insures all [[bank deposits]], such as saving, fixed, current, [[recurring deposit]] for up to the limit of [[Indian rupee|Rs]]. 500,000 of each depositor in a bank. The limit was increased from 1 [[lakh]] to 5 lakh on 4 February 2020.<ref>{{cite web|url=http://www.business-standard.com/article/economy-policy/srikrishna-panel-insists-on-single-unified-regulator-in-financial-sector-113032100183_1.html |title=Srikrishna panel insists on single unified regulator in financial sector |publisher=[[Business Standard]] |date=2013-03-21 |accessdate=2013-11-23}}</ref><ref>{{cite web | url=https://www.dicgc.org.in/AU_Profile.html | archive-url=https://web.archive.org/web/20210416200055/https://www.dicgc.org.in/AU_Profile.html | url-status=dead | archive-date=16 April 2021 | title=DICGC - About Us - Profile }}</ref>

==Statistics==
{| class="wikitable"
|+Deposit Amount Insurance<ref>{{Cite web|url=https://www.linkedin.com/pulse/deposit-insurance-rs-5-lakh-customers-get-money-90-days-?trk=organization-update-content_share-article|title=Deposit Insurance of Rs 5 Lakh: Customers to Get Money in 90 Days if Bank Under Moratorium}}</ref><ref>{{Cite web|url=https://www.business-standard.com/budget/article/budget-2020-govt-increases-deposit-insurance-to-rs-5-lakh-from-rs-1-lakh-120020200009_1.html|title=Budget 2020: Govt increases deposit insurance to Rs 500,000 from Rs 100,000|date= 2 February 2020|author=Subrata Panda}}</ref>
!Year
!Amount
|-
|1 Jan 1962
|1500
|-
|1 Jan 1968
|5000
|-
|1 Apr 1970
|10000
|-
|1 Jan 1976
|20000
|-
|1 Jul 1980
|30000
|-
|1 May 1993
|100000
|-
|4 Feb 2020
|500000
|}
{| class="wikitable"
|+Per 100Rs Deposit Insurance
!Year
!Amount
|-
|1 Jan 1962
|0.05
|-
|1 Oct 1971
|0.04
|-
|1 Jul 1993
|0.05
|-
|1 Apr 2004
|0.08
|-
|1 Apr 2005
|0.10
|-
|1 Apr 2020
|0.12
|}

The functions of the subsidiary are governed by the provisions of ''The Deposit Insurance and Credit Guarantee Corporation Act, 1961'' (DICGC Act) and ''The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961'' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the Act.<ref>{{cite web |url=http://www.dicgc.org.in/English/AU_Profile.html |title=About Us - Profile |publisher=..Dicgc |date= |accessdate=2013-11-23 |archive-url=https://web.archive.org/web/20130324060519/http://www.dicgc.org.in/English/AU_Profile.html |archive-date=24 March 2013 |url-status=dead }}</ref>

A maximum of ₹5,00,000 (after the budget of 2020–21) is insured for each user for both [[Principal (finance)|principal]] and interest amount.
If the customer has accounts in different branches of the same bank, all of those accounts are clubbed together and the total sum is insured to a maximum of ₹5,00,000.<ref>{{Cite web |title=DICGC_Flyer.pdf |url=https://www.dicgc.org.in/pdf/2023/PublicAwarenessMaterial/DICGC_Flyer.pdf |access-date=22 Mar 2023 |website=DICGC |page=Pdf page 3 |quote=For the purpose of the above ceiling, all the deposit accounts of a depositor in the 'same right and the same capacity' maintained across all branches of the concerned bank are clubbed.}}</ref> 

However, if there are more accounts in same bank, all of those are treated as a single account. The [[Insurance|insurance premium]] is paid by the insured banks itself. This means that the benefit of [[deposit insurance]] protection is made available to the depositors or customers of banks free of cost.

The Corporation has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half-year periods.
The Corporation may restore the registration of the bank if the bank makes a request and pays all the amounts due by way of premium from the date of default together with interest.

==Reforms==
The [[Financial Sector Legislative Reforms Commission]] (FSLRC) was set up by the Government of India, [[Ministry of Finance (India)|Ministry of Finance]], on 24 March 2011, to review and rewrite the legal-institutional architecture of the Indian financial sector. In its report the FSLRC recommended a regulatory structure consisting of seven agencies including a deposit insurance-cum regulatory agency (which was named as Resolution Corporation). The present DICGC will be subsumed into the Resolution Corporation (RC)  which will work across the financial system. 

Drawing on the best international practice, the FSLRC proposal involved a unified resolution corporation that will deal with an array of financial firms such as banks and [[insurance companies]]; it will not just be a bank deposit insurance corporation. It will concern itself with all financial firms which make highly intense promises to consumers, such as banks, insurance companies, defined benefit pension funds, and payment systems. 

It will also take responsibility for the graceful resolution of systemically important financial firms, even if they have no direct links to consumers.{{citation needed|date=May 2018}}

The Government of India introduced the Financial Resolution and Deposit Insurance bill, 2017 (FRDI bill) in Lok Sabha in the Monsoon session of 2017 to bring forth these reforms.<ref>{{cite web|url=http://www.prsindia.org/billtrack/the-financial-resolution-and-deposit-insurance-bill-2017-4871/|title=PRS - Bill Track - The Financial Resolution and Deposit Insurance Bill, 2017|website=www.prsindia.org|access-date=2018-05-04|archive-date=6 January 2018|archive-url=https://web.archive.org/web/20180106173534/http://www.prsindia.org/billtrack/the-financial-resolution-and-deposit-insurance-bill-2017-4871/|url-status=dead}}</ref> There have been many concerns with regards to the new bill such as:

# Presently the banks have to pay a sum to the DICGC as insurance premium which insures all kinds of bank deposits up to a limit of ₹5,000,000. In case a stressed bank had to be liquidated, the depositors would be paid through DICGC. Though the bill proposes the banks to pay a sum to the Resolution Corporation, it neither specifies the insured amount nor the amount a depositor would be paid. It is thus unclear how much a depositor would be paid in case of [[liquidation]].
# The bail in clause which largely worked against the interests of the depositors (as in Cyprus).<ref>{{cite news|url=http://www.thehindu.com/business/Industry/the-frdi-bill-and-concerns-of-the-depositor/article21081902.ece|title=The FRDI Bill and concerns of the depositor|author=<!-- Staff writer(s), no byline -->|date=29 November 2017|work=[[The Hindu]]}}</ref>{{Clarify|reason=|date=October 2019}}

==References==
{{Reflist}} 

==External links==
* [https://www.dicgc.org.in/ DICGC Official Website]

[[Category:Banking in India]]
[[Category:Subsidiaries of the Reserve Bank of India]]
[[Category:Financial services companies based in Mumbai]]
[[Category:Deposit insurance]]
[[Category:Corporate subsidiaries]]
[[Category:Indian companies established in 1978]]
[[Category:1978 establishments in Maharashtra]]