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India’s bank deposit insurance (DICGC) — how much of your deposit is protected?

Quick answerIn India, bank deposits are insured by the DICGC (Deposit Insurance and Credit Guarantee Corporation, a wholly-owned RBI subsidiary) up to Rs 5,00,000 per depositor per bank — principal plus interest combined — a limit in force since 4 February 2020, when it was raised five-fold from Rs 1 lakh. Because most balances are small, that limit fully protects about 97.8% of all deposit accounts; by value, insured deposits are roughly Rs 94 lakh crore (~43% of assessable deposits). Banks pay the premium (a flat 12 paise per Rs 100 of deposits); depositors pay nothing. Current figures are official, rounded, approximate and revised periodically; the coverage-limit history is the statutory record.

The chart shows the DICGC deposit-insurance coverage limit (Rs per depositor per bank) at each revision since 1962. The table below carries the same figures so the page is readable without JavaScript — for accessibility and AI answer engines.

DICGC deposit-insurance coverage limit over time

Effective yearCoverage limitNote
1962Rs 1,500Deposit insurance introduced in India (DICGC's predecessor)
1968Rs 5,000Limit raised as the scheme widened to more banks
1970Rs 10,000DICGC formed (1971) by merging deposit insurance & credit guarantee
1976Rs 20,000Coverage limit doubled
1980Rs 30,000Coverage limit raised again
1993Rs 1,00,000Limit raised to Rs 1 lakh (effective 1 May 1993) — held for 27 years
2020Rs 5,00,000Limit raised five-fold to Rs 5 lakh (effective 4 Feb 2020)

The coverage limit is per depositor per bank, covering principal and interest together, across all accounts held in the same right and capacity at one bank. The dates are the statutory record; for the exact notification text see the source linked below.

Key DICGC metrics (current, approximate)

A snapshot of how far the cover reaches and how the scheme is funded. All values are rounded and approximate and are not in the BankPulse Verified-numbers ledger.

MetricValueWhat it means
Coverage limitRs 5,00,000Per depositor per bank, principal + interest combined (since 4 Feb 2020)
Fully protected accounts~97.8%Share of total deposit accounts fully covered by the Rs 5 lakh limit
Insured deposits~Rs 94 lakh croreTotal deposits protected across all insured banks
Insured-to-assessable ratio~43%Insured deposits as a share of total assessable deposits
Deposit-insurance premium12 paise per Rs 100Annual premium banks pay on assessable deposits (flat rate)
Insured banks~1,990All commercial banks plus eligible cooperative banks
Reserve ratio (DIF)~2.1%Deposit Insurance Fund as a share of insured deposits

What it means for bankers and depositors

Deposit insurance is the quiet backstop of public confidence in banking. The Rs 5 lakh cover, in force since February 2020, means that in the event an insured bank fails or its licence is cancelled, each depositor is paid up to Rs 5,00,000 by the DICGC — and because the great majority of accounts hold less than that, roughly 97.8% of accounts are fully protected. By value the ratio is lower (~43% of assessable deposits) because large balances above the cap are only partly covered. For a banker, the scheme is a cost of doing business — a flat 12 paise per Rs 100 premium on assessable deposits, paid by the bank, that funds the Deposit Insurance Fund (a reserve ratio of about 2.1% of insured deposits). The Rs 1 lakh limit had stood unchanged for 27 years before the 2020 increase, so the cover has not kept pace with deposit growth over the long run; any future revision would raise both protection and the premium pool. For depositors, the practical takeaways are that the limit is per bank (spreading large balances across banks raises total cover) and that it now applies within a time-bound payout framework after a bank is placed under restriction.

Key terms in this dataPlain-English definitions of the terms behind this dashboard — see the full Indian banking glossary. Scheduled commercial bank · CASA
More live dataExplore BankPulse’s other live RBI dashboards: SCB Aggregate Deposits & CASA · CASA Ratio · Bank Health Scores · Deposits by Bank Group.

India deposit insurance (DICGC) FAQ

How much of my bank deposit is insured in India?
Bank deposits are insured by the DICGC up to Rs 5,00,000 per depositor per bank, covering principal and interest together. All accounts you hold in the same capacity at one bank are added up under this single limit. The Rs 5 lakh limit has applied since 4 February 2020. Deposits at two different insured banks are each separately covered up to Rs 5 lakh.
What is the DICGC and what does it cover?
The DICGC (Deposit Insurance and Credit Guarantee Corporation) is an RBI subsidiary that insures savings, current, fixed and recurring deposits at all commercial banks and eligible cooperative banks (~1,990 insured banks). Banks pay the premium; depositors pay nothing. If an insured bank fails, the DICGC pays each depositor up to Rs 5,00,000. Government and inter-bank deposits are excluded.
What share of deposit accounts is fully protected?
About 97.8% of all deposit accounts are fully protected by the Rs 5 lakh limit, because most balances are small. By value, insured deposits are roughly Rs 94 lakh crore, around 43% of total assessable deposits. Figures are rounded and approximate.
Has the deposit insurance limit always been Rs 5 lakh?
No. It has risen from Rs 1,500 (1962) through Rs 5,000, Rs 10,000, Rs 20,000, Rs 30,000, Rs 1,00,000 (from 1 May 1993) to Rs 5,00,000 (from 4 February 2020). The Rs 1 lakh limit was held for 27 years before the 2020 five-fold increase.

Methodology & sources: see how BankPulse dashboards are sourced, verified & updated · machine-readable deposit-insurance JSON feed.

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Source: DICGC (Deposit Insurance and Credit Guarantee Corporation, a wholly-owned subsidiary of the RBI) — Annual Report and coverage-limit notifications, with RBI publications, rbi.org.in and dicgc.org.in. The coverage-limit history is the statutory record; current metric values are rounded and approximate, revised periodically and are not in the BankPulse Verified-numbers ledger. We never reproduce source text verbatim. Reviewed by Vikram Jain. Last updated 20 Jun 2026, 03:54 IST.
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