Economics • Banking & FinanceEasy
What is the maximum deposit insurance coverage provided by the DICGC per depositor per bank in India?
A. Rupees One Lakh
B. Rupees Two Lakhs
C. Rupees Five Lakhs✓ Correct Answer
D. Rupees Ten Lakhs
💡 Solution & Explanation
The Deposit Insurance and Credit Guarantee Corporation provides insurance coverage of up to rupees five lakhs per depositor per bank in India, protecting savings, fixed, current, and recurring deposits. Earlier set at rupees one lakh, this limit was revised upward in the Union Budget to enhance depositor confidence in the banking system. Every scheduled commercial bank, including regional rural banks and small finance banks, is mandated to register with this subsidiary of the Reserve Bank of India.
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