What is the maximum deposit insurance coverage provided by the Deposit Insurance and Credit Guarantee Corporation (DICGC) per depositor per bank in India?

💡 Solution & Explanation

The Deposit Insurance and Credit Guarantee Corporation provides deposit insurance coverage up to a maximum limit of five lakhs rupees per depositor per insured bank. Lower limits like one lakh rupees were previously applicable before being revised upward to enhance depositor confidence. Other options mentioning higher or lower thresholds are factually incorrect under current banking regulations. This statutory body operates as a wholly owned subsidiary of the Reserve Bank of India to protect small bank depositors from financial distress.