Economics • Banking & FinanceEasy
Under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme in India, what is the maximum insurance coverage limit provided per depositor per commercial bank?
A. Rs 1 Lakh
B. Rs 2 Lakhs
C. Rs 5 Lakhs✓ Correct Answer
D. Rs 10 Lakhs
💡 Solution & Explanation
The Deposit Insurance and Credit Guarantee Corporation provides insurance coverage of up to five Lakh rupees per depositor for both principal and interest amounts held in the same right and capacity across a single insured commercial bank. This enhanced limit was enacted in 2020 to provide greater financial security to retail depositors following distress events in certain scheduled lenders.
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