DICGC - 15 Mints Seminar Notes

DICGC - 15 Mints Seminar Notes

 

DICGC-DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION`.

• DICGC is a wholly owned subsidiary of the reserve bank of india.
• DICGC  is formed by (RBI).
• DICGC is established in 15th July 1978.
• DICGCs head quarters in (Mumbai).
• Chairman of DICGC is MICHAEL PATRA, who is deputy governor of (RBI).

• DICGC   work is to protect the  bank  deposit  holders  ,when the bank fails to play its depositors;
  

• Its means if the customers   deposits such as in savings , current ,or in fixed  account ;if the bank is closed by any issues or by any technical  problems or by RBI inspection ; in this situation , how customers money protected;
• If bank fails to re- pay the amount to the customers , then DICGC will pay the amount to the customers;
• So, customers have to pay any insurance , for this one; no’ bank will only pay the insurance to the DICGC.
• Every bank have to pay 10 paisa as a premium to the DICGC for 100 rupees, and now it increased to 12 paisa ;
• All banks have to play the insurance to the   DICGC  ;which banks under the control of DICGC otherwise the license of the bank will be cancelled .

   

• Before the 2021 the depositors wants to wait for 8 to 10 years for the return of amount by the DICGC ; but now within 90 days , the amount will be return.
• The limit increased from 1 lakh to 5lakhs in 2021.
• DICGC covers all commercial and foreign banks located in  india ; central, state and urban co-operative banks; regional banks ; and local banks ;.
• DICGC not covers primary co-operative societies , co-operative banks from  meghalaya , chandigarh, lakshadweep, and dadra and nagar haveli;.

• For a individual in  each bank  maximum limit with interest 5 lakhs only.
• For example ; a depositor have 5 lakhs in his account  and 1 lakh as a bank interest ; but DICGC covers only 5 lakhs.
• Foe suppose the individual have account in same bank but in different branches ; for example ; 5 lakhs in one branch account  and another 5 lakhs in other branch account;  but DICGC clubbed together that two accounts and then it covers only 5 lakhs for both branches ; because a individual can keep limit 5 lakhs in a bank not in a same bank but in a different branch;.

 

• Another example; if an individual have account in two different banks like 5,5lakhs in each bank ,then the DICGC will cover both 10 lakhs;
  
• If a individual have 5 lakhs in his /her account and he /she also have joint account with his /her family like son or daughter ,and then this account also have same 5 lakhs in a same bank then the DICGC covers in both as 10 lakhs ;.
  

CONCLUSION;

• DICGC is useful to customers; and also protector to the customers;.
• It is safety lockers to the customers;
• Good job done by ( RBI), reserve bank of india;.
• Every individual amount in a bank is protected by DICGC……………!.

Presented by

Sathish

MAT Student

Magme School of Banking