DICGC posts 17% growth in insurance fund

economictimes.indiatimes.com:

Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India (RBI), reported a 17% increase in its deposit insurance fund in FY24.

The Deposit Insurance Fund (DIF), which is crucial for settling claims of depositors from liquidated or amalgamated banks, climbed to ₹1,98,310 crore as of March 31, 2024, up from ₹1,69,602 crore the previous year.

The fund is collected by premiums received from insured banks, interest income from investments, and cash recoveries from failed banks. The deposit insurance limit in India is set at ₹5 lakh per depositor per bank.

In FY24, the DICGC collected ₹23,879 crore in deposit insurance premiums, an 11.7% increase year-on-year. During the same period, the total claims settled by the DICGC amounted to ₹1,431.5 crore.

DICGC has insured 1,997 banks, including 140 commercial banks (12 small finance banks, 6 payments banks, 43 regional rural banks, and 2 local area banks) and 1,857 cooperative banks (1,472 urban cooperative banks, 33 state cooperative banks, and 352 district central cooperative banks).