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Informist, Friday, May 29, 2026

--RBI: DICGC total insured deposits INR 104 tln Sept 30 vs INR 97 tln yr ago 

--RBI: Better managed bks to pay lower premium to DICGC FY27 onwards 

--RBI: DICGC total claims settled INR 19.88 bln in FY26 

--RBI: DICGC deposit insurance fund INR 2.62 tln as of Mar 31, up 14% on yr 

MUMBAI – The Deposit Insurance and Credit Guarantee Corp.'s deposit insurance fund grew more than 14% on year to INR 2.62 trillion as of Mar. 31, the Reserve Bank of India said in its annual report for financial year 2025-26 (Apr-Mar). The deposit insurance premiums collected rose 12% on year to INR 299.47 billion.

Better managed banks shall pay a lower premium from FY27 than the uniform rate of 0.12% that banks paid in FY26, the RBI said. The newly introduced risk-based premium framework introduced a two-tier system from Apr. 1. The first tier contains most scheduled commercial banks, while tier-2 will contain regional rural banks and co-operative banks.

The new framework allows a maximum incentive of 33.3% for banks which have contributed to the deposit insurance fund for a long period without any claim payouts, among other parameters. Ratings agency ICRA Ltd. estimated banks' return on assets to improve by 3 basis points based on the change.

The deposit insurer is a wholly owned subsidiary of the RBI and insures retail deposits of up to INR 500,000. The deposit insurance scheme is mandatory for all commercial and co-operative banks that are registered under the central bank. As of Mar. 31, the total number of registered banks were 1,950, comprising 124 commercial banks and 1,826 co-operative banks. Deposit Insurance and Credit Guarantee Corp. settled claims worth INR 19.88 billion towards depositors of 72 urban co-operative banks. 

The RBI data showed total insured deposits were INR 104 trillion, as on Sept. 30, 41.1% of the assessable amount, up from INR 96.75 trillion in the previous year. The reserve ratio of the deposit insurance fund to insured deposits was 2.37% on Sept. 30. The coverage limit is 2.4 times India's GDP per capita in FY26, the RBI said.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Durgesh Nandan

Edited by Akul Nishant Akhoury

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