Page 48 - Banking Finance May 2023

ARTICLE

Abstract
Deposit insurance has been an integral part of banking industry in ensuring the stability of financial systems. The Federal
Deposit Insurance Corporation (FDIC) in the United States has been providing deposit insurance since 1933, whereas
the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India was established in 1978. While both
institutions serve similar functions, there are some notable differences in their policies and operations. This paper
aims to explore the lessons DICGC can learn from FDIC and how it can be useful for the Indian banking industry and
its customers. The study uses a qualitative research approach, utilizing secondary sources of data. The findings suggest
that the DICGC can learn from the FDIC's best practices in terms of risk-based premiums, effective communication
with stakeholders, and continuous review of policies. The study concludes that implementing these practices can
enhance the efficiency and effectiveness of DICGC in ensuring the stability of the Indian banking system.

Introduction: depositors in case of bank failures. The FDIC in the United
States and the DICGC in India are two prominent deposit
The financial stability of a country's banking industry is
insurance corporations that protect the deposits of bank
crucial for economic development. Deposit insurance plays
customers. While both institutions have similar objectives,
a key role in maintaining financial stability by protecting
there are notable differences in their policies and
operations. This paper aims to explore the lessons DICGC
About the author
can learn from FDIC and how it can be useful for the Indian
banking industry and its customers.
Vinoth Mani M
Senior Manager (Research Officer)
Union Learning Academy - Literature Review:
People Excellence, Union Bank of India
The FDIC has been providing deposit insurance since 1933,

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