Deposit Insurance and Credit Guarantee Corporation

The Deposit Insurance and Credit Guarantee Corporation was established in 1978 after the merger of Deposit Insurance Corporation and Credit Guarantee Corporation of India Ltd. with the enactment of the Deposit Insurance and Credit Guarantee Corporation Act, 1961. It is a fully owned subsidiary of and is governed by the RBI.

Functions

• DICGC protects money of depositors of all commercial and foreign banks located in India; central, state, and urban co-operative banks; regional rural banks; and local banks.

But, it does not cover the following type of deposits:

• Deposits of state or Central governments
• Deposits from foreign governments
• State land development banks depositing with the state co-operative bank
• Inter-bank deposits
• Funds that are due on account of India and deposits received outside India
• Funds exempted by the corporation with the previous approval from RBI