Deposit Insurance and Credit Guarantee Corporation (DICGC) has asked all banks to prominently display its logo and QR code on their websites and Internet banking portals by August 31 with a view to creating awareness about the deposit insurance scheme.
“With a view to enhancing the awareness about deposit insurance in a focused and sustained manner and in consultation with the RBI, it has been decided that all banks registered with DICGC shall henceforth display the logo of DICGC and QR code linked to the DICGC website prominently on their website and internet banking portal,” the circular said.
Under the DICGC scheme, each depositor’s bank deposit is insured up to Rs 5 lakh in each bank (for both principal and interest) which was earlier limited to Rs.1 lakh. The stressed bank is expected to collate all information regarding the number of claimants and claim amount and inform DICGC about it within the first 45 days. Within the next 45 days, DICGC is mandated to process the claim and make payment to each eligible depositor.
DICGC is settling claims from its Deposit Insurance Fund (DIF), a corpus created out of the insurance premium collected from the banks. In the event of a bank fails or goes into liquidation or reconstructed or amalgamated or merged with another bank. The size of the Deposit Insurance Fund (DIF) stood at Rs 1,69,263 crore as on March 31, 2023.
The scheme covers deposits in commercial banks, local area banks (LABs), payments banks (PBs), small finance banks (SFBs), regional rural banks (RRBs), and cooperative banks. The number of registered insured banks as on March 31, 2023, stood at 2,027, comprising 140 commercial banks. These include 43 RRBs, two LABs, six PBs, 12 SFBs, and 1,887 cooperative banks.
The circular said that deposit insurance plays an important role in protecting especially small depositors, instilling confidence in the banking system, and maintaining financial stability. The display of the logo and QR code will enable customers to easily identify banks covered by the deposit insurance scheme of DICGC and facilitate timely access to information on deposit insurance, it added.
For more details on the settlement process read the following post.
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