DICGC

DICGC (Deposit Insurance and Credit Guarantee Corporation) is a wholly-owned subsidiary of the Reserve Bank of India established in 1978. It insures all deposits — savings, current, fixed, and recurring — at commercial banks, small finance banks, regional rural banks, cooperative banks, and local area banks. The coverage limit is ₹5,00,000 per depositor per bank, covering both principal and interest. If you hold FDs at three different banks, you're covered up to ₹5 lakh at each bank independently. This insurance is automatic — you don't need to apply or pay anything. The bank pays the premium. DICGC does not cover NBFC deposits (like Bajaj Finance FDs) or cooperative society deposits. In case of a bank failure, DICGC aims to settle claims within 90 days. This insurance is a key reason FDs are considered one of the safest investments in India.