Sep 21, 2023, 01:25 PM IST
If any bank is unable to meet its financial obligations to creditors and depositors, it fails.
If you have ever wondered about the security of your deposits in banks, don't worry; most of your money is safe under DICGC, a subsidiary of the RBI.
Deposit Insurance and Credit Guarantee Corporation (DICGC) covers almost all types of deposits you have in the bank, including savings, fixed, current, and recurring deposits.
The insurance limit applies to each account separately, which means the money you have in each bank is protected up to the limit of Rs 5 lakh.
The DICGC doesn't directly interact with the depositors of failed banks, it gives money to the bank, and it's the bank's responsibility to distribute it to the depositors.
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