Page 44 - Banking Finance August 2017

ARTICLE

DICGC

FOR WHOM THE

BELL RINGS?

Background: coverage to the deposits of customers of Banks and for which
the corporation charges certain amount of premium. The
DICGC i.e Deposits Insurance and Credit guarantee
insurance cover which initially was Rs.1500/-,upon various
corporation, a wholly owned subsidiary of Reserve bank of
amendments from time to time, enhanced to Rs.100000/-
India, came in to existence on 15th July 1978. DICGC which
since 1st May 1993. The insurance cover of 1.00 lac is per
comprises Deposit Insurance which had its genesis through
depositor for deposits held by him in the same capacity and
Deposit Insurance Act 1961, came into force on 1st Jan 1962
and the Credit Guarantee Corporation having its genesis same right at all the branches of a bank taken together.
through Credit Guarantee Corporation of India Ltd., a public
limited company promoted by Reserve Bank of India on Eligible Deposits for Insurance Cover:
January 14 1971. With a view to integrate the functions of The Corporation insures all bank deposits,such as savings,
DIC and CGCI , both were merged in 1978 to form DICGC. fixed, current, recurring, etc.except the (i) deposits of foreign
governments; (ii) deposits of Central / State Governments;
Role of DICGC: (iii)deposits of State Land Development Banks withthe State
DIC i.e Deposit insurance corporation provides the insurance co-operative banks; (iv) inter-bank deposits; (v) deposits
received outside India, and (vi) deposits specifically
About the author exempted by the Corporation with the previous approval of
the Reserve Bank.
Sandeep Gupta
Chief Manager(Faculty) Banks Covered :
Union Bank of India Staff Training Center
Lucknow (UP) All commercial banks including the branches of foreign banks
functioning in India, Local Area Banks (LABs) and Regional

44 | 2017 | AUGUST | BANKING FINANCE

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010