What Is Deposit Insurance?

[Murtaugh]

What Is Deposit Insurance?

[Sigmund]

In Indian context It is an insurance which all bank take with Deposit Insurance and Credit Guarantee Corporation(DICGC). Under this insurance, individuals deposit under savings, current, fixed, recurring deposit etc are insured to a limit of Rs 1 Lakhs. In the event of the bank becoming insolvent, DICGC will pay the individual account holder an amount limited to the actual balance in their account along with accumulated interest or Rs 1 Lakhs whichever is lower.

[Benji]

Explicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.

Introduced in 1962

[Taicligh]

All the deposits of inviduals upto an amount in banks are insured under the deposit insurance