Depositors Protection

Depositors Protection

Bank deposit upto Rs. 5,00,000/- in respect of each depositor is fully insured by the Deposit Insurance and Credit Guarantee Corporation under the Deposit Insurance Scheme. The Scheme covers all commercial banks (including Regional Rural Banks) operating in India and also Co-operative banks in states and Union Territories to which the Scheme has been extended by the Central Government. These banks are registered as insured banks with the Corporation. Once an insured bank fails, deposit insurance is available to its depositors. The Corporation's liability in respect of insured deposits will arise in the following cases :

Case Corporation's Liability
If a bank goes into liquidation. The Corporation pays to each depositor, directly or through the liquidator, total amount of his deposit (in the same capacity and in the same right) upto a maximum of Rs. 5 Lakh.
If a bank is reconstructed or amalgamated with another bank and the Secheme of reconstruction or amalgamation does not entitle a depositor to get credit for the full amount of his deposit. The Corporation will arrange to pay to each depositor through the reconstructed bank or the transferee bank an amount equivalent to the shortfall between the amount due to the depositor under the insurance scheme and the amount of credit received by him under the scheme of reconstruction or amalgamation.

For Further information please visit the website of the Corporation