1. Which banks are insured by the DICGC?
All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.
2. What does the DICGC insure?
- The DICGC insures all deposits such as savings, fixed, current, recurring, etc.
- Except certain types of deposits such as Deposits of Foreign Governments, Inter bank deposits, etc
3. What is the maximum deposit amount insured by the DICGC?
Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity.
4. What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank?
The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount of upto Rupees five lakhs is paid.
5. Does the DICGC insure just the principal on an account or both principal and accrued interest?
The DICGC insures principal and interest upto a maximum amount of ₹ 5 lakhs. For example, if an individual had an account with a principal amount of 4,95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 4,99,000. If, however, the principal amount in that account was 5 lakhs, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.
6. Can deposit insurance be increased by depositing funds into several different accounts all at the same bank?
All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks, they would then be separately insured.
7. Are deposits in different banks separately insured?
Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.
8. What is the meaning of deposits held in the same capacity and same right; and deposits held in different capacity and different right?
If an individual opens more than one deposit account in one or more branches of a bank for example, Shri S.K. Jain opens one or more savings/current account and one or more fixed/recurring deposit accounts etc., all these are considered as accounts held in the same capacity and in the same right. Therefore, the balances in all these accounts are aggregated and insurance cover is available upto rupees five lakhs in maximum.
If Shri S.K. Jain also opens other deposit accounts in his capacity as a partner of a firm or guardian of a minor or director of a company or trustee of a trust or a joint account, say with his wife Smt. K. A. Jain, in one or more branches of the bank then such accounts are considered as held in different capacity and different right. Accordingly, such deposits accounts will also enjoy the insurance cover upto rupees five lakhs separately.
It is further clarified that the deposit held in the name of the proprietary concern where a depositor is the sole proprietor and the amount of Deposit held in his individual capacity are aggregated and insurance cover is available upto rupees five lakhs in maximum.
Illustrations
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Savings A/C
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Current A/C
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FD A/C
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Total Deposits
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Deposits Insured upto
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Shri S. K. Jain (Individual)
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4,17,200
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22,000
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80,000
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5,19,200
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5,00,000
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Shri S. K. Jain (Partner of ABC & Co.)
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4,75,000
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50,000
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5,25,000
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5,00,000
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Shri S. K. Jain (Guardian for Master Ajit)
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97,800
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3,80,000
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4,77,800
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4,77,800
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Shri S. K. Jain (Director, J.K. Udyog Ltd.)
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4,30,000
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2,45,000
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6,75,000
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5,00,000
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Shri S. K. Jain jointly with Smt. K. A. Jain
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87,500
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4,50,000
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70000
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6,07,500
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5,00,000
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Deposits held in joint accounts (revised w.e.f. April 26, 2007)
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If more than one deposit accounts (Savings, Current, Recurring or Fixed deposit) are jointly held by individuals in one or more branch of a bank say three individuals A, B & C hold more than one joint deposit accounts in which their names appear in the same order then all these accounts are considered as held in the same capacity and in the same right. Accordingly, balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of ₹ 5 lakhs.
However, if individuals open more than one joint accounts in which their names are not in the same order for example, A, B and C; C, B and A; C, A and B; A, C and B; or group of persons are different say A, B and C and A, B and D etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately upto rupees five lakhs to every such joint account where the names appearing in different order or names are different.
illustrations
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Account (i)
(Savings or Current A/C)
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First a/c holder- "A"
Second a/c holder - "B"
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Maximum insured amount upto ₹ 5 lakh
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Account (ii)
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First a/c holder - "A"
Second a/c holder - "C"
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Maximum insured amount upto ₹ 5 lakh
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Account (iii)
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First a/c holder - "B"
Second a/c holder - "A"
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Maximum insured amount upto ₹ 5 lakh
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Account (iv) at Branch ‘X’ of the bank
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First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"
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Maximum insured amount upto ₹ 5 lakh
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Account (v)
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First a/c holder - "B"
Second a/c holder - "C"
Third a/c holder - "A"
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Maximum insured amount upto ₹ 5 lakh
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Account
(vi)(Recurring or Fixed Deposit)
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First a/c holder - "A"
Second a/c holder - "B"
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The account will be clubbed with the a/c at (i)
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Account (vii)
At Branch ‘Y’ of the bank
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First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"
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The account will be clubbed with the a/c at (iv)
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Account (viii)
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First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "D"
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Maximum insured amount upto ₹ 5 lakh
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10. When is DICGC liable to pay?
If a bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor upto Rupees five 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."
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 him under the reconstruction / amalgamation scheme within two months from the date of receipt of claim list from the transferee bank / Chief Executive Officer of the insured bank/transferee bank as the case may be."
