Economics • Banking & FinanceEasy
What is the primary statutory function of the Deposit Insurance and Credit Guarantee Corporation in the Indian financial architecture?
A. To provide deposit insurance protection to bank depositors up to a statutory limit per account and offer credit guarantees✓ Correct Answer
B. To regulate foreign institutional investments in domestic stock exchanges
C. To formulate direct fiscal policies and manage sovereign public debt issuance
D. To fix minimum support prices for agricultural commodities nationwide
💡 Solution & Explanation
The Deposit Insurance and Credit Guarantee Corporation is a wholly owned subsidiary of the Reserve Bank of India established to provide deposit insurance coverage to eligible depositors across insured commercial and cooperative banks. The current statutory insurance limit stands at five lakh rupees per depositor per bank. This protection bolsters public confidence in the stability of the domestic banking system.
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