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Informist, Thursday, May 29, 2025

--RBI: DICGC settled INR 4.76 bln claims in FY25 for 43 urban co-op banks 

--RBI: DICGC's Deposit Insurance Fund at INR 2.289 tln on Mar 31, up 15.2% 

MUMBAI – The Deposit Insurance and Credit Guarantee Corp., a wholly owned subsidiary of the Reserve Bank of India, settled calims worth INR 4.76 billion for 43 urban co-operative banks, the RBI said in its annual report for 2024-25 (Apr-Mar) released Thursday. The corporation's Deposit Insurance Fund stood at INR 2.289 trillion as of Mar. 31, up 15.2% on year, the RBI said. 

The Deposit Insurance Fund is maintained to settle claims of depositors of banks taken into liquidation, amalgamation, or put under all-inclusive directions. The fund has been made through the transfer of the corporation's surplus over expenditure each year, net of taxes.

The Deposit Insurance and Credit Guarantee Corp. was set up in 1962 to administer the deposit insurance scheme in India, with an objective to protect depositors and preserve public confidence in the banking system. The scheme is mandatory for all commercial and co-operative banks that are licensed by the RBI. As of Mar. 31, deposits of 1,982 banks, comprising 139 commercial banks and 1,843 co-operative banks, were insured under the scheme. 

Currently, deposits of up to INR 500,000 per depositor of a bank are insured. As of Sept. 30, the number of fully insured deposit accounts under the coverage limit was 2.869 billion, higher than 2.818 billion a year ago. This constituted 97.7% of the total number of accounts, lower than 97.9% year ago. In terms of value, the total insured deposits were INR 96.75 trillion, higher than INR 90.32 trillion in the previous year. 

The reserve ratio, which is the ratio of the deposit insurance fund to insured deposits was 2.21% as of Sept. 30, up from 2.02% in the previous year. Currently, the coverage limit is 2.5 times the GDP per capita in FY25. The corporation levies a flat premium of 0.12% on the total assessable deposits per annum from banks for providing deposit insurance. In FY25, the corporation received INR 267.64 billion as deposit insurance premium, up 12.1% on year.  End

Reported by Ashna Mariam George 

Edited by Akul Nishant Akhoury

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