Which of the following entities is responsible for providing deposit insurance and credit guarantee facilities to commercial and cooperative banks in India?

💡 Solution & Explanation

The Deposit Insurance and Credit Guarantee Corporation operates as a wholly-owned subsidiary of the Reserve Bank of India, established under the DICGC Act of 1961 to protect small depositors. Unlike the Securities and Exchange Board of India or the National Bank for Agriculture and Rural Development, it explicitly provides deposit insurance up to a statutory limit of five lakh rupees per depositor per bank. All scheduled commercial and cooperative banks are compulsorily covered under this insurance scheme.