DICGC is a wholly owned company of the Reserve Bank. DICGC insures the banks of the country. Under this, in case the bank sinks or goes bankrupt, you are given Rs 5 lakh. Know about your work here. Let us know about it in detail.
Most people deposit money in banks thinking that their money is safe. But suppose the bank in which your money is deposited sinks or goes bankrupt, then what will happen to your money? If you are a bank customer, then you must know that if your bank defaults or goes bankrupt, you get an insurance cover of up to Rs 5 lakh on the amount deposited in the bank. Know about this here.
This amount is given to you by Deposit Insurance and Credit Guarantee Corporation (DICGC). DICGC is a wholly owned company of the Reserve Bank. DICGC insures the banks of the country. Earlier, under this Act, an amount of up to Rs 1 lakh was given in case of bank sinking or bankruptcy, but the government has increased it to Rs 5 lakh. Foreign banks which have branches in India also come under its purview.
In how many days will the amount be received?
In case of bank collapse or closure, DICGC collects all the information related to customers’ accounts within 45 days. After this investigation is done and the amount is given to the customer within the next 45 days. This entire process takes about 90 days i.e. three months.
What types of accounts are covered?
All types of commercial banks come under its purview. It covers all types of accounts including savings, current, fixed and recurring deposits. If your account is in a government bank or a big private bank, then your money is considered insured. According to the website of DICGC, in the update after August 2022, it has been told that it insures a total of 2,035 banks in the country. Apart from this, if you want to know whether your bank is insured or not, then you can find out by visiting https://www.dicgc.org.in/FD_ListOfInsuredBanks.html.
Having accounts in two banks
If you have accounts in two banks and both banks go bust, then in such a situation you get Rs 5 lakh each from both the banks. But if you have two accounts in the same bank, then in this situation you will get only Rs 5 lakh. Apart from this, whether your deposit in the bank is Rs 10 lakh or Rs 2 lakh, if the bank sinks then you will be given only Rs 5 lakh.
