DICGC: ₹5 Lakh Deposit Insurance, Coverage and Claims Explained
Independent guide. We are not part of RBI, NPCI or any bank, and we never ask for your account details, PIN or OTP.
DICGC stands for Deposit Insurance and Credit Guarantee Corporation. It is a wholly owned subsidiary of the RBI that insures your bank deposits. If an insured bank fails, you get back up to ₹5 lakh per bank, principal and interest together. Every commercial and co-operative bank is covered, and the bank, not you, pays the premium.
- Full form
- Deposit Insurance and Credit Guarantee Corporation
- Owned by
- RBI (wholly owned subsidiary)
- Law
- DICGC Act, 1961
- Cover
- ₹5 lakh per depositor per bank, since 4 Feb 2020
- Includes
- Principal + interest
- Cost to you
- Nothing. The bank pays the premium.
- Bank under AID
- Paid within 90 days
- Insured banks
- 1,950 (31 Mar 2026)
What is DICGC?
DICGC is India's deposit insurer. It runs under the Deposit Insurance and Credit Guarantee Corporation Act, 1961, and is a wholly owned subsidiary of the RBI, with its head office in Mumbai. Its job is to protect depositors, especially small ones, if a bank fails.
Insurance is automatic and compulsory. You don't apply or pay for it. Every insured bank pays a premium on its deposits, and that cost can't be passed on to you. No bank can opt out.
At the end of March 2026, 293.5 crore accounts, 97.4% of all bank accounts, had ₹5 lakh or less, so they were fully protected.
The ₹5 lakh limit
- ₹5 lakh per depositor, per bank, for principal and interest together. It was ₹1 lakh until 3 Feb 2020; RBI announced the rise to ₹5 lakh from 4 Feb 2020.
- All branches of one bank count as one. Deposits in different branches of the same bank are added up.
- Different banks are insured separately, even if both fail on the same day.
- Interest is included, but within the limit. DICGC's own example: principal ₹4,95,000 + interest ₹4,000 = ₹4,99,000 insured. If the principal alone is ₹5 lakh, the interest is not insured because it is over the limit.
- Loans are set off first. The bank may deduct what you owe it from your deposits; the cover applies to what is left.
Which deposits are covered and which are not
| Covered | Not covered |
|---|---|
| Savings accounts | Deposits of Central or State Governments |
| Current accounts | Deposits of foreign governments |
| Fixed deposits (FDs) | Inter-bank deposits (one bank's money in another) |
| Recurring deposits (RDs) | Deposits received outside India |
| Other bank deposits | Any amount DICGC has specifically exempted with RBI's approval |
Never insured by DICGC: deposits with an NBFC, deposits with Land Development Banks, mutual funds, shares and bonds, ETFs and cryptocurrencies.
Which banks are insured
- All commercial banks: public and private sector banks, branches of foreign banks in India, local area banks and Regional Rural Banks (RRBs).
- Small finance banks and payments banks are commercial banks and appear on DICGC's list of insured banks (19 Oct 2026), for example AU Small Finance Bank, Ujjivan Small Finance Bank, Airtel Payments Bank and India Post Payments Bank.
- All co-operative banks: State, Central (district) and urban co-operative banks (UCBs).
- Not insured: primary co-operative societies (they are not banks) and NBFCs.
On 31 Mar 2026, 1,950 banks were insured: 124 commercial banks and 1,826 co-operative banks.
Cover ends when a bank's registration is cancelled, for example when its licence is cancelled. Deposits stay insured up to that date. When RBI cancelled Paytm Payments Bank's licence, its DICGC registration was cancelled from the same day, 24 Apr 2026.
How to check if your bank is insured
- Open the list of insured banks on dicgc.org.in (List of Banks → List of Insured Banks).
- Find your bank's exact name and town.
- Also check the banks under AID and de-registered banks lists.
- Still unsure? Ask the branch. Insured banks are given DICGC leaflets to display, and must show the DICGC logo and QR code on their website.
How accounts are added up: same capacity and same right
The ₹5 lakh limit applies to each capacity in which you hold money at a bank, not to each account.
- Added together (one ₹5 lakh limit): all your own savings, current, FD and RD accounts in any branch of the bank, plus the account of a business where you are the sole proprietor.
- Separate ₹5 lakh limit each: accounts you hold as a partner of a firm, guardian of a minor, director of a company or trustee of a trust, and joint accounts.
- Joint accounts (rule from 26 Apr 2007): joint accounts with the same people in the same order are added together. A different order (A-B vs B-A) or a different group of people (A-B-C vs A-B-D) gets its own ₹5 lakh limit.
A worked sample for one depositor, Ravi, at one bank that fails:
| Sample account | Balance with interest | Capacity | Insured |
|---|---|---|---|
| Ravi: savings (branch 1) | ₹1,20,000 | Ravi as an individual | Total ₹5,70,000 → ₹5,00,000 |
| Ravi: FD (branch 2) | ₹3,50,000 | ||
| Ravi: RD | ₹60,000 | ||
| Ravi Traders (sole proprietor) current account | ₹40,000 | ||
| Ravi as guardian of his minor son | ₹80,000 | Guardian | ₹80,000 |
| Joint: Ravi, then Meera | ₹2,00,000 | Joint (Ravi first) | ₹2,00,000 |
| Joint: Meera, then Ravi | ₹6,00,000 | Joint (Meera first) | ₹5,00,000 |
| Total | ₹14,50,000 | ₹12,80,000 |
If Ravi also owed the bank ₹1,00,000 on a personal loan, the bank could set it off against his individual deposits first: ₹5,70,000 − ₹1,00,000 = ₹4,70,000, all of it insured.
Tip: If your money at one bank is above ₹5 lakh in one capacity, the simplest protection is to spread it across more than one bank. Each bank has its own ₹5 lakh limit.
How and when you get paid
You don't claim from DICGC directly. It pays through the bank, its liquidator or the bank that takes it over. What happens depends on why your money is stuck:
When RBI places a bank under All-Inclusive Directions (AID) that stop you withdrawing, Section 18A of the DICGC Act (in force from 1 Sep 2021) applies:
- Submit a claim willingness form to the bank's CEO or administrator, signed, with attested copies of your OVDs (identity documents). The form is available at the bank, and there is an online willingness form on DICGC's site. There is no cut-off date while the bank is under AID.
- Day 45: the bank must send DICGC a list of each depositor's balance.
- Next 30 days: DICGC verifies the claims.
- Next 15 days: DICGC pays, up to ₹5 lakh. The total must not exceed 90 days from the date of AID.
If the bank misses its 45-day deadline, DICGC may be unable to settle under Section 18A.
- The bank's licence is cancelled and a liquidator is appointed.
- The liquidator prepares a depositor-wise claim list, after set-off of loans and adding up same-capacity accounts, within 3 months of taking charge.
- DICGC pays the liquidator within 2 months of receiving the list.
- The liquidator pays you. If you don't approach the liquidator, your unpaid amount goes back to DICGC, so contact the liquidator promptly.
If a failing bank is merged or reconstructed and you get less than your full deposit under the scheme, DICGC pays the difference, up to the ₹5 lakh limit. It pays the bank that takes over (or the bank's CEO) within 2 months of receiving the claim list, and that bank credits you.
Checking your claim status
Use DICGC's Check your Claim Status page: select the bank and enter your mobile number to get an OTP. It covers banks placed under AID after 1 Apr 2024, and liquidated banks whose claim list arrived after 1 Apr 2024. The data comes from the bank, so ask the bank about any mismatch.
Problems and complaints
- About the bank's handling of your deposit or claim form: complain to the bank first, then to the RBI Ombudsman under RB-IOS at cms.rbi.org.in or 14448.
- About DICGC itself: write to its Complaint Redressal Cell at [email protected] or call 022-2302 8236. Give your name and address, the facts and supporting documents.
No agent is needed. You don't pay anyone to get deposit insurance. Ignore calls or messages offering to "release" your money for a fee, and never share an OTP. Report fraud on 1930 or cybercrime.gov.in.
History of DICGC
Deposit insurance was first discussed after the Bengal banking crises of 1948. The failures of Laxmi Bank and Palai Central Bank in 1960 led to the law. DICGC says India was the second country to insure deposits, after the United States in 1933.
The Deposit Insurance Corporation Bill gets the President's assent.
The Deposit Insurance Corporation (DIC) starts work, covering commercial banks.
Cover is extended to co-operative banks.
Cover is extended to RRBs.
DIC merges with the Credit Guarantee Corporation of India (CGCI, set up 14 Jan 1971) to form DICGC.
The current rule for adding up joint accounts takes effect.
Cover rises from ₹1 lakh to ₹5 lakh per depositor.
Section 18A: payment within 90 days for banks under AID.
Banks move from a flat premium to a risk-based premium.
FAQs
What is the full form of DICGC?
Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the RBI that insures bank deposits.
How much of my deposit is insured?
Up to ₹5 lakh per bank, principal and interest together, for all accounts you hold in the same capacity, since 4 Feb 2020.
Do I have to pay for deposit insurance?
No. The bank pays the premium and can't pass it on to you. Cover is automatic.
Are my FDs in two branches of the same bank insured separately?
No. All branches of one bank are added together, with one ₹5 lakh limit. Deposits in different banks are insured separately.
Is a joint account insured separately from my own account?
Yes. A joint account is a different capacity, so it has its own ₹5 lakh limit. Joint accounts with the same names in the same order are added together; a different order gets separate cover.
Are small finance banks and payments banks covered?
Yes. They are on DICGC's list of insured banks, with the same ₹5 lakh cover.
Are co-operative bank deposits insured?
Yes, all co-operative banks are insured. Primary co-operative societies are not, because they are not banks.
Are NBFC deposits insured by DICGC?
No. Deposits with an NBFC, and mutual funds, shares, bonds and cryptocurrencies, are not covered.
How soon will I get money if RBI restricts withdrawals at my bank?
Within 90 days of AID, if you submit the willingness form and the bank sends DICGC the depositor list within 45 days.
Will the bank deduct my loan before paying insurance?
Yes. The bank can set off what you owe it, and the cover applies to the remaining deposit.
Official sources
- DICGC – FAQs (depositors, liquidators, banks) (accessed 31 Oct 2026)
- DICGC – A Guide to Deposit Insurance (what is not covered) (accessed 31 Oct 2026)
- RBI – DICGC increases insurance cover to ₹5 lakh, 4 Feb 2020 (accessed 31 Oct 2026)
- DICGC – About us and history (accessed 31 Oct 2026)
- DICGC – List of insured banks (updated 19 Oct 2026) (accessed 31 Oct 2026)
- DICGC – Banks under AID (accessed 31 Oct 2026)
- DICGC – Annual Report 2025-26 press release, 14 Oct 2026 (accessed 31 Oct 2026)
- DICGC – Information leaflet 2024-25 (accessed 31 Oct 2026)
- DICGC – Cancellation of registration of Paytm Payments Bank (accessed 31 Oct 2026)
- DICGC – Check your claim status (accessed 31 Oct 2026)
- DICGC – Claim willingness form (accessed 31 Oct 2026)
- DICGC – Complaint Redressal Cell (accessed 31 Oct 2026)
- RBI – Reserve Bank – Integrated Ombudsman Scheme, 2026 (accessed 31 Oct 2026)
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