💰 Maximum Coverage Amount

Each depositor in a bank is insured up to a maximum of ₹5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by them in the same right and same capacity as on the date of liquidation/cancellation of bank's license or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

📋 What Deposits are Covered?

The DICGC insures all types of deposits such as:

• Savings Bank Deposits
• Fixed Deposits
• Current Deposits
• Recurring Deposits

⚠️ What Deposits are NOT Covered?

The following types of deposits are not insured by DICGC:

• Deposits of foreign Governments
• Deposits of Central/State Governments
• Inter-bank deposits
• Any amount due on account of any deposit received outside India
• Any amount which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India

🧮 How is Insurance Calculated?

The DICGC insures principal and interest up to a maximum amount of ₹5 lakh.

👥 Multiple Accounts in Same Bank

If an individual opens more than one deposit account in one or more branches of a bank (for example, savings account, current account, fixed deposit, recurring deposit, etc.), all these accounts are considered as held in the same capacity and same right. Therefore, the balances in all these accounts are aggregated and insurance cover is available up to ₹5 Lakhs maximum.

🔄 Accounts in Different Capacities

If a depositor also opens other deposit accounts in different capacities such as:

• As a partner of a firm
• As a guardian of a minor
• As a director of a company
• As a trustee of a trust
• In a joint account with spouse or others

Such accounts are considered as held in different capacity and different right. Accordingly, such deposit accounts will also enjoy the insurance cover up to ₹5 Lakhs separately.

🤝 Joint Accounts

If more than one deposit accounts are jointly held by individuals in one or more branches of a bank, the following rules apply:

Same Order of Names: If three individuals A, B & C hold multiple joint deposit accounts where their names appear in the same order, all these accounts are considered as held in the same capacity and same right. Balances in all these accounts will be aggregated for insurance purposes within the limit of ₹5 Lakhs.

Different Order of Names: If individuals open joint accounts where their names appear in different orders (e.g., A, B, C; C, B, A; C, A, B; A, C, B) or the group of persons is different (e.g., A, B, C and A, B, D), then the deposits held in these joint accounts are considered as held in different capacity and different right. Insurance cover will be available separately up to ₹5 Lakhs to every such joint account.

🏪 Proprietary Concern

The deposit held in the name of a proprietary concern where a depositor is the sole proprietor and the amount of deposit held in their individual capacity are aggregated and insurance cover is available up to ₹5 Lakhs maximum.

🏦 In Case of Bank Liquidation

If a bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor up to ₹5 lakhs within two months from the date of receipt of claim list from the liquidator. The liquidator has to disburse the claim amount to each insured depositor corresponding to their claim amount.

🔀 In Case of Bank Merger/Amalgamation

If a bank is reconstructed or amalgamated/merged with another bank, the DICGC pays the bank concerned the difference between the full amount of deposit or the limit of insurance cover in force at the time (whichever is less) and the amount received by the depositor under the reconstruction/amalgamation scheme within two months from the date of receipt of claim list from the transferee bank.

⏱️ All-Inclusive Directions (AID)

In terms of Section 18A of the DICGC Act, 1961 (effective from September 01, 2021), the Corporation is liable to settle deposit insurance claims of insured banks placed under All-Inclusive Directions (AID) by RBI within 90 days, subject to submission of a list showing outstanding deposits of each depositor by the insured bank within the statutory timeline of 45 days of imposition of AID by RBI.

Timeline breakdown:

• Bank submits depositor list: Within 45 days from date of AID imposition
• DICGC verifies claims: Within 30 days from receipt
• DICGC makes payment: Within 15 days from completion of verification
• Total time: Not to exceed 90 days from date of AID imposition

Q: Do depositors have to pay for insurance cover?

No, depositors don't have to pay anything for the deposit insurance cover. The insurance premium is paid by the bank to DICGC.

Q: Do depositors need to file claims directly with DICGC?

No. In the event of a bank's liquidation, the liquidator prepares a depositor-wise claim list and sends it to DICGC for scrutiny and payment. The DICGC pays the money to the liquidator who is liable to pay to the depositors. In case of amalgamation/merger of banks, the amount due to each depositor is paid to the transferee bank.

Q: Which banks are covered under DICGC?

All commercial banks including branches of foreign banks functioning in India, local area banks, regional rural banks, and cooperative banks are insured by DICGC. The Warangal District Cooperative Central Bank Limited is a registered member of DICGC.

Q: Is there a time limit to submit willingness forms for banks under AID?

No, depositors can submit the willingness forms to the bank at any time for onward submission of claims to DICGC, provided the bank is under AID at the time of submission of willingness form by the depositors.