DEPOSITINSURANCE

Eligible Deposits:

• • Savings bank deposits
• • Current account deposits
• • Fixed deposits
• • Recurring deposits
• • Cumulative/annuity deposits
• • Any other deposit accepted by banks

Coverage Calculation:

• • Principal amount + accrued interest
• • Up to date of bank's liquidation
• • Maximum ₹5 lakh per depositor
• • Separate for each bank
• • Joint accounts treated separately
• • Different capacity deposits separate

Not Covered:

• • Deposits of foreign governments
• • Central/State government deposits
• • Inter-bank deposits
• • Deposits above ₹5 lakh
• • Any amount due on account of deposit
• • Primary cooperative societies deposits

Special Cases:

• • Deposits held in different capacities
• • Trust deposits (separate coverage)
• • Partnership firm deposits
• • Company deposits
• • HUF deposits
• • Minor's deposits (guardian capacity)

Urban Cooperative Banks (UCBs):

• • Primary (Tier-I) UCBs
• • District Central Cooperative Banks
• • State Cooperative Banks
• • Multi-state cooperative banks
• • Salary earner societies
• • Professional cooperative banks

Rural Cooperative Banks:

• • Primary Agricultural Credit Societies
• • District Central Cooperative Banks
• • State Cooperative Banks
• • Land Development Banks
• • Farmers Service Societies
• • Fishermen cooperative societies

Covered Institutions:

• • RBI licensed cooperative banks
• • State cooperative banks
• • District central cooperative banks
• • Primary urban cooperative banks
• • Multi-state cooperative banks
• • Salary earner societies (banking)

Exclusions:

• • Primary Agricultural Credit Societies
• • Non-banking cooperative societies
• • Unlicensed cooperative institutions
• • Cooperative societies without banking license
• • Self-help groups
• • Microfinance institutions

Automatic Claims (Preferred):

• • DICGC pays directly to depositors
• • No claim form required
• • Faster processing (90 days)
• • Based on bank's deposit records
• • Electronic transfer to accounts
• • Minimal documentation

Manual Claims:

• • Depositor files claim with DICGC
• • Detailed claim form required
• • Supporting documents needed
• • Verification process
• • Longer processing time
• • Used when automatic fails

Essential Documents:

• • Claim form (duly filled)
• • Identity proof (Aadhaar/PAN)
• • Address proof
• • Bank account statements
• • Fixed deposit receipts
• • Passbook/account records

Additional Documents:

• • Nomination details (if applicable)
• • Legal heir certificate
• • Death certificate (for deceased)
• • Power of attorney (if applicable)
• • Joint account holder details
• • Any other relevant documents

Financial Health Indicators:

• • Capital adequacy ratio (CRAR)
• • Net NPA percentage
• • Return on assets (ROA)
• • Return on equity (ROE)
• • Cost-to-income ratio
• • Liquidity coverage ratio

Regulatory Compliance:

• • RBI licensing status
• • DICGC membership
• • Regulatory ratings
• • Audit reports
• • Compliance history
• • Supervisory actions

Risk Mitigation:

• • Spread deposits across multiple banks
• • Keep deposits under ₹5 lakh per bank
• • Mix of bank types (PSU, private, cooperative)
• • Different account types
• • Geographic diversification
• • Regular monitoring

Portfolio Strategy:

• • Emergency funds in safe banks
• • Higher returns in stable institutions
• • Short-term deposits for liquidity
• • Long-term deposits for growth
• • Regular review and rebalancing
• • Professional advice

Depositor Rights:

• • Automatic insurance coverage
• • Right to claim compensation
• • Equal treatment of depositors
• • Timely claim settlement
• • Information access rights
• • Appeal mechanisms

DICGC Obligations:

• • Maintain insurance fund
• • Process claims promptly
• • Provide public information
• • Ensure fair treatment
• • Maintain transparency
• • Regular reporting

Bank Obligations:

• • Mandatory DICGC membership
• • Premium payment obligations
• • Depositor information maintenance
• • Regulatory compliance
• • Prudential norms adherence
• • Transparency requirements

Regulatory Powers:

• • Bank supervision
• • Corrective actions
• • License cancellation
• • Liquidation orders
• • Penalty imposition
• • Depositor protection

Available Forums:

• • DICGC grievance cell
• • Banking Ombudsman
• • Consumer forums
• • High Court writ petitions
• • Supreme Court appeals
• • Parliamentary committees

Legal Remedies:

• • Mandamus for claim processing
• • Compensation for delays
• • Interest on delayed payments
• • Costs and damages
• • Injunctive relief
• • Class action suits

Key Changes:

• • Coverage increased from ₹1 lakh to ₹5 lakh
• • Effective from February 4, 2020
• • Covers 98%+ of depositors fully
• • Significant protection enhancement
• • Reduced depositor anxiety
• • Aligned with international standards

Impact Assessment:

• • Improved depositor confidence
• • Reduced bank run risks
• • Enhanced financial stability
• • Better crisis management
• • Increased cooperative bank viability
• • Strengthened banking system

Regulatory Strengthening:

• • Enhanced RBI supervision
• • Stricter licensing norms
• • Improved governance standards
• • Professional management requirements
• • Regular stress testing
• • Technology adoption mandates

Operational Improvements:

• • Core banking solutions
• • Digital payment integration
• • Risk management systems
• • Audit and compliance
• • Customer service standards
• • Financial inclusion initiatives

Proposed Reforms:

• • Further coverage enhancement
• • Risk-based premium structure
• • Early intervention framework
• • Resolution mechanisms
• • Technology integration
• • International best practices

Expected Benefits:

• • Enhanced depositor protection
• • Improved system stability
• • Better risk management
• • Increased efficiency
• • Greater transparency
• • Stronger cooperative sector