1. Dicgc Is A Subsidiary Of
2. Dicgc Rules
3. Dicc Ithaca

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of Reserve Bank of India. It was established on 15 July 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities.

Deposit Insurance and Credit Guarantee Corporation (DICGC)Created OnMarch 5, 2021Last Updated OnMarch 5, 2021bySuganya Arumugam You are here: Main Deposit Insurance and Credit Guarantee Corporation (DICGC) DICGC) is a wholly owned subsidiary.

DICGC stands for Deposit Insurance and Credit Guarantee Corporation. The functions of the DICGC are governed by the provisions of The Deposit Insurance and Credit Guarantee Corporation Act, 1961 (DICGC Act) and The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961 framed by the RBI in exercise of the powers conferred by Section 50(3) of the said Act. Deposit Insurance and Credit Guarantee Corporation (DICGC) is a very old subsidiary of RBI which provides insurance to all the banks registered under the guidelines of the RBI Act. Deposit Insurance and Credit Guarantee Corporation (DICGC) increases the insurance coverage for depositors in all insured banks to Rs.5 lakhs Updated account details of DICGC for Premium Payment by banks, Repayments by Liquidators etc. Alert on Fictitious Emails.

DICGC insures all bank deposits, such as saving, fixed, current, recurring deposit for up to the limit of Rs. 500,000 of each deposits in a bank.^[1]

Framework[edit]

The functions of the subsidiary are governed by the provisions of 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the Act.^[2]

A maximum of ₹5,00,000 (after the budget of 2020-21) is insured for each user for both principal and interest amount.If the customer has accounts in different branches of the same bank, all of those accounts are insured to a maximum of ₹5,00,000 each.

However, if there are more accounts in same bank, all of those are treated as a single account.The insurance premium is paid by the insured banks itself. This means that the benefit of deposit insurance protection is made available to the depositors or customers of banks free of cost.

The Corporation has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half-year periods.The Corporation may restore the registration of the bank if the bank makes a request and pays all the amounts due by way of premium from the date of default together with interest.

Reforms[edit]

The Financial Sector Legislative Reforms Commission (FSLRC) was set up by the Government of India, Ministry of Finance, on 24 March 2011, to review and rewrite the legal-institutional architecture of the Indian financial sector. In its report the FSLRC recommended a regulatory structure consisting of seven agencies including a deposit insurance-cum regulatory agency (which was named as Resolution Corporation). The present DICGC will be subsumed into the Resolution Corporation (RC) which will work across the financial system.

Drawing on the best international practice, the FSLRC proposal involved a unified resolution corporation that will deal with an array of financial firms such as banks and insurance companies; it will not just be a bank deposit insurance corporation. It will concern itself with all financial firms which make highly intense promises to consumers, such as banks, insurance companies, defined benefit pension funds, and payment systems.

It will also take responsibility for the graceful resolution of systemically important financial firms, even if they have no direct links to consumers.^{[citation needed]}

The Government of India introduced the Financial Resolution and Deposit Insurance bill, 2017 (FRDI bill) in Lok Sabha in the Monsoon session of 2017 to bring forth these reforms.^[3] There have been many concerns with regards to the new bill such as:

1. Presently the banks have to pay a sum to the DICGC as insurance premium which insures all kinds of bank deposits up to a limit of ₹5,00,000. In case a stressed bank had to be liquidated, the depositors would be paid through DICGC. Though the bill proposes the banks to pay a sum to the Resolution Corporation, it neither specifies the insured amount nor the amount a depositor would be paid. It is thus unclear how much a depositor would be paid in case of liquidation.
2. The bail in clause which largely worked against the interests of the depositors (as in Cyprus).^{[4][clarification needed]}

References[edit]

1. ^'Srikrishna panel insists on single unified regulator in financial sector'. Business Standard. 21 March 2013. Retrieved 23 November 2013.
2. ^'About Us - Profile'. ..Dicgc. Archived from the original on 24 March 2013. Retrieved 23 November 2013.
3. ^'PRS - Bill Track - The Financial Resolution and Deposit Insurance Bill, 2017'. www.prsindia.org. Retrieved 4 May 2018.
4. ^'The FRDI Bill and concerns of the depositor'. The Hindu. 29 November 2017.

External links[edit]

Source:Yojana Magazine and DIGC

Vision

To be recognised as one of the most efficient and effective deposit insurance providers, responsive to the needs of its stakeholders.

Dicgc Is A Subsidiary Of

Mission

To contribute to financial stability by securing public confidence in the banking system through the provision of deposit insurance, particularly for the benefit of the small depositors.

Legal Framework/ Objective

• The functions of the DICGC are governed by the provisions of ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’ (DICGC Act) and ‘The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961’ framed by the Reserve Bank of India in the exercise of the powers conferred by sub-section (3) of Section 50 of the said Act.
• The preamble of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 states that it is an Act to provide for the establishment of a Corporation for the purpose of insurance of deposits and guaranteeing of credit facilities and for other matters connected therewith or incidental thereto.

Types of Deposits Covered

Dicgc Rules

DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits.

• Deposits of foreign Governments;
• Deposits of Central/State Governments;
• Inter-bank deposits
• Deposits of the State Land Development Banks with the State co-operative banks;
• Any amount due on account of and deposit received outside India
• Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.

Banks covered by Deposit Insurance Scheme

Dicc Ithaca

• All commercial banks including the branches of foreign banks functioning in India, Local Area Banks and Regional Rural Banks.
• Co-operative Banks – All eligible co-operative banks as defined in Section 2(gg) of the DICGC Act are covered by the Deposit Insurance Scheme. All State, Central and Primary co-operative banks functioning in the States/Union Territories which have amended their Co-operative Societies Act as required under the DICGC Act, 1961, empowering RBI to order the Registrar of Co-operative Societies of the respective States/Union Territories to wind up a co-operative bank or to supersede its committee of management and requiring the Registrar not to take any action for winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI, are treated as eligible banks. At present all Co-operative banks are covered by the Scheme. The Union Territories of Lakshadweep and Dadra and Nagar Haveli do not have Co-operative Banks.

Management

• The authorized capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI). The management of the Corporation vests with its Board of Directors, of which a Deputy Governor of the RBI is the Chairman.
• As per the DICGC Act, the Board shall consist of, besides the Chairman,
  1. One Officer (normally in the rank of Executive Director) of the RBI
  2. One Officer from the Central Government
  3. five Directors nominated by the Central Government in consultation with the RBI, three of whom are persons having special knowledge of commercial banking, insurance, commerce, industry or finance and two of whom shall be persons having special knowledge of, or experience in co-operative banking or co-operative movement and none of the directors should be an employee of the Central Government