The Deposit Insurance is the term belongs to protect bank depositors from losses caused by banks inability to pay it’s debts when due. Deposit Insurance Systems are one component of a financial system safety that promotes financial stability.
In India Deposit insurance introduced in 1962, The Deposit Insurance Corporation (DIC) commenced functioning on 1st January 1962 under the subsidiary of Reserve Bank Of India (RBI).In 1971 witnessed the establishment of of another institution the Credit Guarantee Corporation of India Ltd. (CGCI) In 1978 The DIC and CGCI were merged to form Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
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.
Deposits of each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him “in the same right and same capacity” as on the date of liquidation/cancellation of bank’s license or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
Date of Last Premium Submission
21th November 2017 till Deposit on 31st March 2018
Premium Amount is Rs 5554917.79/-