What is the DICGC Full Form?

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What is the DICGC Full Form?

The DICGC full form is Deposit Insurance and Credit Guarantee Corporation. The DICGC is a subsidiary of the RBI. The institution is responsible for granting deposit insurance that works as a protection cover for the bank account holders when the bank fails to pay its depositors. The agency is responsible for insuring all types of deposit accounts. For example, saving accounts, recurring deposits, current accounts, and fixed deposits up to INR 5 lakh. However, only INR 5 lakh will be paid by the DICGC in case of bank bankruptcy.

How DICGC Works?

The DICGC is responsible for ensuring the money is deposited in all commercial banks and foreign banks in India are protected. It includes the central bank, urban cooperative bank, state banks, and regional banks. The operations of the agency are performed under the  Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961, and the Deposit Insurance and Credit Guarantee Corporation Act, 1961. According to this act, the purpose of the establishment of DICGC is to insure deposits, guarantee credit facilities, and more.

What is the DICGC Accreditation?

The DICGC accreditation refers to the certification granted by the DICGC to the bank. It contains information regarding the protection offered by the DICGC to the depositors of the insured bank. For any further clarification, customers can enquire with the bank. 

Also Read: How to Build a Career in Investment Banking?

What DICGC Does Not Cover?

DICGC does not cover several types of deposits. It includes the following:

  • Deposits made by the foreign, central, or state governments
  • Inter-bank deposits such as state land development banks depositing with the state cooperative banks
  • Funds that are on account of India and deposits received outside India 
  • Previously exempted funds with approval from the RBI.

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