{"id":285,"date":"2019-08-13T08:44:41","date_gmt":"2019-08-13T08:44:41","guid":{"rendered":"http:\/\/blog.budwisefunds.com\/?p=285"},"modified":"2020-12-07T15:28:01","modified_gmt":"2020-12-07T15:28:01","slug":"what-is-dicgc-how-can-it-help-the-fd-holder-in-case-of-bank-default","status":"publish","type":"post","link":"https:\/\/budwisefunds.com\/blog\/what-is-dicgc-how-can-it-help-the-fd-holder-in-case-of-bank-default\/","title":{"rendered":"What is DICGC? How can it help the fd holder in case of bank default?"},"content":{"rendered":"\r\n<p style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">Are you aware of the fact that the bank in which you deposit your hard-earned money can go into liquidation? Well, a bank can become bankrupt or its license can be cancelled by RBI due to violations of rules.<\/span><\/p>\r\n<h2 class=\"entry-title\"><strong><span style=\"font-size: 24px;\">Further Reading: <a href=\"https:\/\/fdjaisalagtahai.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">FD Jaisa Lagta Hai<\/a><\/span><\/strong><\/h2>\r\n<p style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">There have been only two instances till date which includes the fall of Palai Central Bank and Laxmi Bank Ltd. The need to ensure the deposits came after the crash of these two banks. And hence on 1<sup>st<\/sup> January 1962, Deposit Insurance Act came into force which was later changed to Deposit Insurance and Credit Guarantee Act (DICGC), 1961.<\/span><\/p>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<p style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">DICGC is entrusted with the responsibility of covering deposits of the depositors\u2019 up to a maximum limit of Rs 100000. All the deposits made with the commercial banks including their foreign branches and cooperative banks are covered by DICGC. The <strong>cost of insurance<\/strong> is to be borne by the banks and not by the depositors.<\/span><\/p>\r\n<h2 class=\"entry-title\"><strong><span style=\"font-size: 24px;\">Also Read: <a href=\"https:\/\/budwisefunds.com\/blog\/credit-card-should-i-apply-for-a-credit-card\/\">Credit Card \u2013 Should I apply for a credit card?<\/a><\/span><\/strong><\/h2>\r\n<h2 style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\"><strong>THINGS TO BE KEPT IN MIND:-<\/strong><\/span><\/h2>\r\n<ol style=\"text-align: justify;\">\r\n<li><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">The limit of Rs 100000 includes both principal and interest. Any amount over and above the limit is not insured.<\/span><\/li>\r\n<li><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">The insurance cover of Rs 100000 is inclusive of all your deposits in the form of savings account, current account, fixed deposits or recurring deposits.<\/span><\/li>\r\n<\/ol>\r\n<p style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\"><img loading=\"lazy\" class=\"wp-image-292 size-full aligncenter\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/Capture5.png\" alt=\"\" width=\"626\" height=\"111\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/Capture5.png 626w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/Capture5-300x53.png 300w\" sizes=\"(max-width: 626px) 100vw, 626px\" \/><\/span><\/p>\r\n<ol style=\"text-align: justify;\" start=\"3\">\r\n<li><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">Deposits held in other branches of the same bank are not eligible for extra insurance cover however; if the deposits are with the other bank then those will be covered separately. For example, if you hold FD of Rs 100000 each with SBI and HDFC bank then these are separately insured by DICGC i.e. you are insured up to Rs 200000.<\/span><\/li>\r\n<li><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">The accounts held jointly are also covered by DICGC. The accounts in which the names of the joint holders are not in the same order are also covered separately. For example, a joint account with names in the order A, B &amp; C and B, C &amp; A will be treated separately and are eligible to receive Rs.100,000 each.<\/span><\/li>\r\n<\/ol>\r\n<p><script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script> <ins class=\"adsbygoogle\" style=\"display: block; text-align: center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6495755798120621\" data-ad-slot=\"6499025866\"><\/ins> <script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><\/p>\r\n<h3 style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\"><strong>CAN A INSURED BANK WITHDRAW ITSELF FROM DICGC COVERAGE <\/strong><\/span><\/h3>\r\n<p style=\"text-align: justify;\"><span class=\"tadv-format-panel\" style=\"font-size: 20px; color: #000000;\">No, it is mandatory for all commercial banks to get themselves insured by DICGC. However, DICGC may cancel the registration of the insured bank if the bank fails to pay a premium for 3 consecutive periods or if the RBI cancels the license of the bank or if the bank gets prohibited from accepting fresh deposits. The intimation regarding the cancellation of the coverage is to be published in the newspaper.<\/span><\/p>\r\n<h2 class=\"entry-title\"><strong><span style=\"font-size: 24px;\">Further Reading: <a href=\"https:\/\/www.dicgc.org.in\/FD_A-GuideToDepositInsurance.html\" target=\"_blank\" rel=\"noopener noreferrer\">DICGC<\/a><\/span><\/strong><\/h2>\r\n<p style=\"text-align: justify;\">\u00a0<\/p>\r\n<p><img loading=\"lazy\" id=\"dicgc\" class=\"size-medium wp-image-562 aligncenter\" src=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png\" alt=\"\" width=\"300\" height=\"88\" srcset=\"https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-300x88.png 300w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1024x299.png 1024w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-768x224.png 768w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1536x449.png 1536w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-2048x598.png 2048w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1200x350.png 1200w, https:\/\/budwisefunds.com\/blog\/wp-content\/uploads\/2019\/08\/download-pdf-button-1-1980x578.png 1980w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Are you aware of the fact that the bank in which you deposit your hard-earned money can go into liquidation? Well, a bank can become bankrupt or its license can&hellip; <\/p>\n","protected":false},"author":1,"featured_media":2128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is DICGC? 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