---
title: "DICGC: Deposit Insurance in India Explained | Model Diplomat"
description: "The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures bank deposits up to ₹5 lakh, protecting depositors in India."
url: "https://modeldiplomat.com/learn/glossary/deposit-insurance-credit-guarantee-corporation"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The DICGC is a wholly-owned subsidiary of the Reserve Bank of India that insures bank deposits up to ₹5 lakh per depositor per bank and guarantees credit facilities.
- What is the maximum deposit insurance cover provided by the DICGC?
- How quickly must depositors be paid after a bank is placed under moratorium?
- Who pays the deposit insurance premium and how much is it?
- Which deposits are excluded from DICGC coverage?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 1 January 1962

   The Deposit Insurance Corporation began operations on , insuring deposits up to ₹1,500 per depositor.

2. 15 July 1978

   In 1971 the General Insurance Corporation's credit guarantee functions were merged with the deposit insurance entity, and on the combined Deposit Insurance…

3. 4 February 2020

   The insurance cover extends to ₹5 lakh per depositor per bank, a ceiling raised from ₹1 lakh by a notification effective .

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Example

In January 2022, the DICGC settled insured claims of depositors of the Punjab and Maharashtra Cooperative Bank up to ₹5 lakh each as the bank was amalgamated with Unity Small Finance Bank under RBI's resolution scheme.

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