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Consider the following statements regarding Deposit Insurance and Credit Guarantee Corporation (DICGC).
  1. DICGC is a wholly-owned subsidiary of the RBI.
  2. DICGC insures all deposits such as savings, fixed, current and recurring including accrued interest.
  3. Regional rural banks (RRBs) and co-operative banks are outside the purview of DICGC cover.
How many of the above statements are correct?
  • a)
    Only one 
  • b)
    Only two 
  • c)
    All three 
  • d)
    None
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements regarding Deposit Insurance and Cred...
  • DICGC is a wholly-owned subsidiary of the RBI and provides deposit insurance. The deposit insurance system plays an important role in maintaining the stability of the financial system, particularly by assuring the small depositors of the protection of their deposits in the event of a bank failure.
  • The deposit insurance extended by DICGC covers all commercial banks including local area banks (LABs), payments banks (PBs), small finance banks (SFBs), regional rural banks (RRBs) and co-operative banks, that are licensed by the RBI.
  • DICGC insures all deposits such as savings, fixed, current and recurring including accrued interest. Each depositor in a bank is insured up to a maximum of Rs 5 lakh for both principal and interest amount held by them as on the date of liquidation or failure of a bank.
  • The earlier insurance cover provided by DICGC was Rs one lakh. However, the limit of insurance cover for depositors in insured banks was raised to Rs 5 lakh in 2020.
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Consider the following statements regarding Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a wholly-owned subsidiary of the RBI. DICGC insures all deposits such as savings, fixed, current and recurring including accrued interest. Regional rural banks (RRBs) and co-operative banks are outside the purview of DICGC cover.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'B'. Can you explain this answer?
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