If your bank collapses tomorrow, DICGC guarantees you get back up to ₹5,00,000. That is the insurance the Reserve Bank of India runs quietly in the background for every savings account, FD, current account, and recurring deposit in every commercial bank in India.
You never sign up for it. You never pay for it. Your bank pays the premium to DICGC (and from February 2026, the premium is risk-based: riskier banks pay more). The coverage is automatic the moment you open an account at an insured bank.
What ₹5 lakh actually covers
The ₹5 lakh limit is per depositor, per bank, per ownership type ("same right and same capacity"). So:
- Your savings account at Bank X: covered up to ₹5L
- Your FD at the same Bank X: combined with savings = still ₹5L total from that bank
- Your savings at Bank Y: separate ₹5L coverage
- Joint account at Bank X: separate from your individual account = another ₹5L
The 90-day payout rule
Since 2021, DICGC must pay insured deposits within 90 days of a bank being placed under moratorium. Before this rule, depositors waited years (PMC Bank depositors waited 4+ years). The 90-day mandate was a direct response to those crises.
Risk-based premiums (new from February 2026)
RBI's new framework charges weaker banks higher insurance premiums. Previously all banks paid the same flat rate. Now DICGC assesses each bank's risk profile and charges accordingly: creating a financial incentive for better risk management.
