DICGC deposit insurance, explained
Deposits in RBI-licensed banks are insured up to ₹5,00,000 per depositor, per bank — principal and interest together. Here is what that covers, what it doesn't, and how to stay fully protected.
Rates updated 18 Oct 2026
The short answer
DICGC — the Deposit Insurance and Credit Guarantee Corporation — is a subsidiary of the Reserve Bank of India that insures bank deposits. If an insured bank fails, DICGC repays each depositor up to ₹5,00,000, principal and interest combined, across all of their deposits at that bank held in the same capacity.
The cover is automatic: you do not apply for it and you do not pay for it — the bank pays the premium. Every bank on RateScan is DICGC-insured. Post Office small savings schemes, which we also list, are not bank deposits: they carry a direct Government of India guarantee instead.
Look up a specific bank's cover on its profile page, or jump to the coverage checker to see how much of your own savings is protected.
What is DICGC?
The Deposit Insurance and Credit Guarantee Corporation (DICGC) was set up under the DICGC Act, 1961 and is owned by the Reserve Bank of India. Its job is deposit insurance: banks pay it a premium, and it uses that fund to repay depositors when an insured bank fails.
All commercial banks are insured — including small finance banks, payments banks, Indian branches of foreign banks, regional rural banks and local area banks. DICGC also covers co-operative banks: state co-operative banks, district central co-operative banks and urban co-operative banks. Primary co-operative societies are not banks and are not insured.
Deposit insurance exists to protect ordinary depositors and keep trust in the banking system — not to protect very large balances. That is why the cover is capped per depositor, per bank.
What is covered, and what isn't
Covered
- Savings accounts
- Fixed deposits (FDs)
- Recurring deposits (RDs)
- Current accounts
- Interest earned or accrued on these deposits — it counts towards the same limit
- NRE and NRO rupee deposits held with an insured bank in India
Not covered
- Deposits of the Central and State Governments
- Deposits of foreign governments
- Deposits one bank holds with another (inter-bank deposits)
- Amounts due on deposits received outside India
- Any deposit DICGC has specifically exempted, with RBI's prior approval
- Anything that is not a bank deposit: mutual funds, shares, bonds, ETFs, crypto, and deposits with NBFCs or Land Development Banks
- Post Office small savings schemes — they are backed by a sovereign guarantee instead
How the ₹5,00,000 limit is counted
The limit is applied per depositor, per bank, per capacity — and it includes interest. These rules decide how much of your money is actually protected.
- Per bank, all branches together. Your savings, FD, RD and current deposits at one bank — across every branch — are added up and insured to ₹5,00,000 in total.
- Principal and interest together. If a ₹5,00,000 FD has earned more interest, the extra is not insured. DICGC's own example: principal ₹4,95,000 plus ₹4,000 interest is ₹4,99,000, which is fully insured.
- Each bank is a separate limit. Deposits at two different banks are each insured up to ₹5,00,000, so splitting a large amount across banks protects more of it.
- Each capacity is a separate limit. Deposits you hold as an individual, as a partner of a firm, as a guardian of a minor, as a director of a company or as a trustee are insured separately, even at the same bank.
- Joint accounts. Joint accounts held by the same people in the same order of names are added together and share one limit. A joint account with a different order of names, or a different group of holders, is insured separately.
- The date that matters. The limit is measured on the day the bank is liquidated, merged or reconstructed, or put under RBI restrictions — what you hold on that date is what counts.
Worked examples
Amounts are illustrative and assume the ₹5,00,000 limit. The first column describes the deposits; the others show what DICGC would pay and what would be left uninsured.
| Situation | Insured | Not insured |
|---|---|---|
| One person, one bank: savings ₹1,20,000 + FD ₹7,00,000 | ₹5,00,000 | ₹3,20,000 |
| Same ₹8,20,000 split across two banks: ₹4,10,000 at each | ₹8,20,000 | ₹0 |
| A ₹5,00,000 FD that has earned ₹32,000 interest | ₹5,00,000 | ₹32,000 |
| Same bank: ₹5,00,000 FD in your name + ₹5,00,000 FD jointly with your spouse | ₹10,00,000 | ₹0 |
Check your own deposits
Add the deposits you hold, including interest earned so far, and see how much is insured. Everything runs in your browser — nothing is sent anywhere. This is an estimate to help you plan, not advice.
Which banks are covered?
Counts below are from the banks RateScan tracks, grouped by type. Open any bank's profile for its own deposit-insurance summary.
| Type of institution | Tracked here | DICGC cover |
|---|---|---|
| Public Sector Banks | 12 | Yes — up to ₹5,00,000 |
| Private Sector Banks | 21 | Yes — up to ₹5,00,000 |
| Small Finance Banks | 11 | Yes — up to ₹5,00,000 |
| Payments Banks Payments banks also cap balances at ₹2 lakh per customer. |
5 | Yes — up to ₹5,00,000 |
| Foreign Banks Applies to deposits in the bank's Indian operations. |
4 | Yes — up to ₹5,00,000 |
| Regional Rural Banks | 28 | Yes — up to ₹5,00,000 |
| Co-operative banks State, district and urban co-operative banks. Credit societies are not banks. |
232 | Yes — up to ₹5,00,000 |
| Government Schemes India Post schemes are not bank deposits. |
1 | No — sovereign guarantee |
To confirm a specific bank, ask at the branch or check the list of insured banks on the DICGC website.
A note on co-operative banks
Co-operative banks pay deposit insurance premiums and are covered like any other bank, up to ₹5,00,000 per depositor. Rural and urban credit societies, however, are not banks and their deposits are not insured.
Co-operative banks are supervised jointly by the RBI and state registrars, and their financial strength varies more than larger banks'. They often pay higher rates — which is exactly why it is worth keeping each deposit within the insured limit. Check a bank's profile page here before depositing.
If a bank fails: how you get paid
Since the 2021 amendment to the DICGC Act, depositors of a bank put under RBI restrictions do not have to wait for a long liquidation. The timeline is fixed by law:
- RBI imposes restrictions on the bank (for example, “all-inclusive directions” that cap withdrawals).
- Within 45 days, the bank sends DICGC the list of depositors and their balances.
- DICGC verifies the claims within 30 days.
- DICGC pays within 15 days of verification — never later than 90 days after the restrictions began, up to ₹5,00,000 per depositor.
If RBI is working on a merger or reconstruction, that 90-day period can be extended by up to 90 days. You may be asked to give the bank a signed form and identity documents so the payment can reach you.
If a bank is liquidated instead, DICGC pays the liquidator within two months of receiving the claim list, and the liquidator pays depositors. Anything above the insured limit depends on what the bank's assets can repay later; there is no guarantee.
How to stay fully protected
- Leave room for interest. A fresh ₹5,00,000 deposit is already at the limit; interest it earns afterwards is not insured. Aim for a total, including future interest, under ₹5,00,000 per bank.
- Spread larger sums across banks. Each bank has its own limit, so ₹10 lakh across two banks is fully insured while ₹10 lakh in one is not.
- Use capacities honestly. Joint accounts with different holders, or accounts held as guardian of a minor, are insured separately — but only where the money genuinely belongs to those holders.
- Weigh rate against size. Small finance and co-operative banks often pay more; keeping each deposit inside the insured limit lets you take the higher rate without taking the risk on the excess. Compare on the FD rates page.
- Check the bank is insured. Ask at the branch or confirm on the DICGC website, especially for smaller co-operative banks.
Frequently asked questions
What is DICGC insurance?
DICGC (Deposit Insurance and Credit Guarantee Corporation) is a subsidiary of the Reserve Bank of India that insures bank deposits. If an insured bank fails, it repays each depositor up to ₹5,00,000 per bank, covering principal and interest together.
How much of my money is insured?
Up to ₹5,00,000 per depositor, per bank, per capacity. All your savings, FD, RD and current deposits at a bank — across every branch — are added together for the limit. Deposits at a different bank have their own separate limit.
Do I have to apply or pay for DICGC cover?
No. Cover is automatic for deposits in an insured bank, and the bank pays the premium, not you.
Is interest included in the ₹5,00,000 limit?
Yes. The limit applies to principal and interest together. If your principal is already ₹5,00,000, any interest on top of it is not insured.
Are joint accounts insured separately from my own account?
Yes. A joint account is a different capacity from deposits in your single name, so it has its own limit. Joint accounts held by the same people in the same order share one limit; a joint account with a different order of names or different holders is insured separately.
How long does it take to get my money if a bank fails?
For a bank put under RBI restrictions, DICGC must pay depositors up to ₹5,00,000 within 90 days of the restrictions starting. The bank has 45 days to send the depositor list, DICGC then verifies it within 30 days and pays within 15 days of verification. The period can be extended by up to 90 days if RBI pursues a merger or reconstruction.
Are small finance banks, payments banks and co-operative banks covered?
Yes. DICGC insures commercial banks of every kind — including small finance banks, payments banks, regional rural banks and foreign banks' Indian branches — as well as state, district and urban co-operative banks. Credit societies that are not banks are not insured.
Are Post Office schemes covered by DICGC?
No. Post Office small savings schemes are not bank deposits, so DICGC does not insure them. They are backed by a sovereign guarantee from the Government of India instead.
Are NRE, NRO and FCNR(B) deposits covered?
NRE and NRO rupee deposits with an insured bank in India are covered like any other deposit, up to ₹5,00,000. For FCNR(B) foreign-currency deposits, confirm the position with your bank, as DICGC's public guide does not spell it out. Deposits received outside India, such as at an overseas branch, are not covered.
How can I check whether my bank is covered?
Open the bank's profile page on RateScan for its deposit-insurance summary, ask at the branch, or check the list of insured banks on the DICGC website.
Sources and further reading
This page summarises DICGC's own published material. Rules can change, so confirm important decisions with the sources below.
- DICGC: A Guide to Deposit Insurance
- The DICGC (Amendment) Act, 2021 — as passed by Parliament
- DICGC press release: payment to depositors under Section 18A
- dicgc.org.in — list of insured banks and notices
Informational only. RateScan.in is not affiliated with DICGC or the RBI and this is not financial advice.
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