The government has set up Deposit Insurance and Credit Guarantee Corporation (DICGC) under RBI to protect depositors if a bank fails. Here is a list of five things you should know about the insurance scheme that is provided by the corporation:Who are insured by the DICGC ? The DICGC adds all funds held in different branches before determining the deposit insurance. The DICGC calculates the deposit insurance for such depositors by adding funds from all the branches and allowing insurance of up to ₹1 lakh on the aggregate amount. The deposit insurance scheme is mandatory for all banks and no bank can voluntarily withdraw from it.

Source: Mint October 11, 2019 03:45 UTC