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Deposit & Credit Insurance

. Act 1961 (DICGC) Wholly owned subsidiary of the Reserve Bank of India • The concept of insuring deposits kept with banks received attention for the first time in the year 1948 after the banking crises in Bengal. • The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21.Deposit Insurance and Credit Guarantee Corporation. 1961 and came into force on January 1. 1962. and two Banks failing in 1960s. • The Deposit Insurance Scheme is offered to all the commercial banks – Public. Private & Foreign banks and NBFCs operating in India.

• Wholly owned subsidiary of the Reserve Bank of India .

Facts & Figures . • Amount Deposited Insured upto Rs. • India was the 2nd country in the world to introduce the deposit insurance scheme. of Bank Insured .DICGC • Deposit insurance.2199 .000/• No. was introduced in India in 1962.100. • The 1st being the United States in 1933.

4. if an individual had an account with principal amount of Rs. One lakh. .Calculation of Deposit Insurance Coverage • The DICGC insures principal and interest upto a maximum amount of Rs.000/+ accrued interest of Rs. • For example.000.000/• The total amount insured by the DICGC would be Rs.99.95.

e. 100 per annum w.f.f.e. 100 per annum w.Cost of Deposit Insurance • Rs. 0.e.e. 0. 0.f. 100 per annum  The premium is collected at half-yearly intervals.10 per Rs. 0.04 per Rs. • maximum premium of up to Rs.f. . 1-10-1961 • Rs. 100 per annum w. 1-10-1971 • Rs. 100 per annum w.08 per Rs. 1-4-2005. 0.15 per Rs.  The banks are required to bear this fee so that the protection of insurance in available to the depositors free of cost.05 per Rs. 1-4-2004 • Rs.

000 50. Oscar (Guardian for Oscar Junior) 7.) Mr.000 1.00.19.07.000 80.I Savings A/C Current A/C FD A/C Total Deposits Mr.200 1.800 17. Oscar (Partner of ABC & Co.30.000 80. Oscar (Director.800 Deposits Insured upto 1.Illustrations .000 75.00.000 1. Oscar 7500 2.50.) Mr.00.75. Oscar jointly with Mrs.000 87.000 1.500 1.000 . Oscar (Individual) Mr.000 45.000 1.000 87.200 22. Global Oscar Ltd.800 Mr.000 2.000 50000 2.00.25.

"B" Account (v) Second a/c holder .1 lakh Third a/c holder ."A" Account (vi) First a/c holder .1 lakh Maximum insured amount upto Rs."A" Account (ii) Second a/c holder ."C" First a/c holder ."A" (Recurring or Fixed Deposit) Account (vii) At Branch ‘Y’ of the bank Second a/c holder ."B" The account will be clubbed with the a/c at (iv) Third a/c holder ."B" Maximum insured amount upto Rs."C" First a/c holder ."B" First a/c holder ."A" Second a/c holder .1 lakh Maximum insured amount upto Rs."D" ."C" First a/c holder ."B" Third a/c holder .1 lakh Maximum insured amount upto Rs.II First a/c holder.1 lakh Maximum insured amount upto Rs.Illustrations .1 lakh The account will be clubbed with the a/c at (i) Account (viii) First a/c holder ."A" First a/c holder ."A" Second a/c holder ."B" Account (iii) Second a/c holder ."A" Second a/c holder ."C" Third a/c holder ."A" Account (iv) at Branch ‘X’ of the bank Second a/c holder ."B" Account (i) (Savings or CurrentA/C) Maximum insured amount upto Rs.