Categories: Banking

DICGC increases the insurance coverage for depositors to 5 lakh

Deposit Insurance and Credit Guarantee Corporation (DICGC) increases the insurance coverage for depositors in all insured banks from Rs 1 lakh to 5 lakh with effect from February 4, 2020, with the approval of Government of India. The rate of premium payable by the insured banks will be raised from 10 paise per Rs 100 of assessable deposits to 12 paise per Rs100 of assessable deposits per annum.

This step is taken with a view to providing a greater measure of protection to depositors in banks the Deposit Insurance and Credit Guarantee Corporation, a wholly-owned subsidiary of the Reserve Bank of India.

Thus in terms of Section 16 (1) of Deposit Insurance and Credit Guarantee Corporation Act 1961, the limit of the total amount payable by the Corporation to any one depositor in respect of his/her deposits with an insured bank in the same right and capacity shall be 75 lakh.

Important takeaways for all competitive exams:

  • Chairman of Deposit Insurance and Credit Guarantee Corporation: B.P.Kanungo.
  • B.P. Kanungo is the Deputy Governor, Reserve Bank of India.
  • Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978.
  • The Head Office of the Corporation is at Mumbai.

 

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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