Mumbai: The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India (RBI), reported a 17% increase in its deposit insurance fund for the fiscal year 2024.
The Deposit Insurance Fund (DIF), essential for compensating depositors in case banks fail, reached ₹1,98,310 crore by March 31, 2024, up from ₹1,69,602 crore the previous year.
This fund is built through premiums from insured banks, interest earned from investments, and cash recoveries from failed banks. Each depositor in India is insured up to ₹5 lakh per bank.
In FY24, DICGC collected ₹23,879 crore in deposit insurance premiums, marking an 11.7% increase from the previous year. During the same period, it settled total claims worth ₹1,431.5 crore.
DICGC provides insurance to 1,997 banks, including 140 commercial banks (such as small finance banks, payments banks, regional rural banks, and local area banks) and 1,857 cooperative banks (including urban cooperative banks, state cooperative banks, and district central cooperative banks).
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