Deposit Insurance Explained: What DICGC Covers

Check the institution and deposit first

The Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI-owned subsidiary, insures eligible deposits at insured banks. Its scope includes savings, fixed, current and recurring deposits. Primary cooperative societies are not insured.

DICGC excludes government and inter-bank deposits, deposits received outside India and deposits specifically exempted with RBI approval. Check the official insured-bank list and deposit scope; a product's name alone does not establish protection.

The current ceiling includes interest

Verified on 2 October 2026, the ceiling is ₹5,00,000 for principal plus interest per depositor per bank in the same right and capacity. DICGC applies the relevant event date, such as liquidation, licence cancellation, a reconstruction scheme taking effect or RBI All Inclusive Directions. This is not a separate allowance for principal and interest.

Multiple accounts do not automatically multiply cover

Accounts held in the same right and capacity are combined across the same bank's branches. Separate savings, FD and RD accounts in your individual capacity do not each receive a fresh ceiling. A sole proprietor's business deposits and personal deposits are also aggregated.

Right and capacity concern the ownership role in which deposits are held. DICGC distinguishes certain roles, such as individual ownership and holding as a partner or guardian. Do not infer a separate allowance from an account label; check the actual ownership classification.

Separate banks are different from separate branches

DICGC applies coverage separately at different banks. Branches of one bank are not separate banks for this purpose. Ownership/capacity rules still apply within each bank; this distinction is not a recommendation to distribute money in a particular way.

Joint ownership needs its own check

Joint accounts at the same bank with the same holders in the same order are aggregated. DICGC treats a different holder combination or different order as a different right and capacity for coverage. This does not mean each holder automatically receives an extra full limit within one joint account. Verify the recorded holders and order against the official guidance rather than assuming a per-person multiplier.

Insurance is not immediate access

Claim settlement follows the applicable process; insured money is not guaranteed to be immediately available in every situation. DICGC also states that bank dues may be set off before determining the insured claim. An account balance alone is therefore not a claim quote.

Deposit insurance does not protect purchasing power, promise a particular interest rate or remove contractual access conditions. Read protection and access as separate questions.

For the household decision about accessible reserves, use emergency fund planning. For deposit terms, return to choosing a bank deposit.

What to check with the official sources

The official references below support the rules on this page. Use their latest guidance for a specific ownership or claim question; this explanation does not determine an individual legal or tax outcome.

• Institution status on DICGC's current insured-bank list and whether the deposit falls within scope.
• Recorded ownership, capacity and joint-holder order where relevant.
• Combined balances at all branches of the same bank, including relevant interest.
• Current coverage rules, any relevant set-off and the applicable claim process.