Deposit Insurance Scheme

Banks covered: All commercial banks including the branches of foreign banks functioning in India, Local Area Banks, Regional Rural Banks, and all eligible Co-operative Banks as defined in Section 2(gg) of the DICGC Act.

Insurance Coverage

Initially, the insurance cover was limited to ₹1,500 per depositor. However, the insurance limit was enhanced from time to time. With effect from 1st May 1993 onwards, the coverage is ₹1,00,000/-.

Types of Deposits Covered

DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except:

• Deposits of foreign Governments
• Deposits of Central/State Governments
• Inter-bank deposits
• Deposits of the State Land Development Banks with the State co-operative banks
• Any amount due on account of and deposit received outside India

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Nomination Facility

Meaning: Nomination is the process of appointing a person to take care of your assets in the event of your death. You can appoint a nominee for your bank account, fixed deposit, etc. Only one person can be appointed as a nominee.

Role of the Nominee: A nominee is a mere custodian of the assets. He is a contact point for the investments. At the time of claiming the savings, the nominee will have to give proof of identity.

Minor as Nominee: Yes, a minor can be a nominee. The guardian will sign on behalf of the nominee.