DEPOSITOR'S PROTECTION

Bank deposit upto ₹ 5,00,000 in respect of each depositor is fully insured by the Deposit Insurance and Credit Guarantee Corporation under the Deposit Insurance Scheme.
The Scheme covers all commercial banks (including Regional Rural Banks) operating in India and also co-operative banks in States and Union Territories to which the Scheme has been extended by the Central Government. These banks are registered as insured banks with the Corporation.
Once an insured bank is liquidated/ placed under “All Inclusive Directions” by the Reserve Bank of India, with restrictions on withdrawal of deposits, deposit insurance is available to its depositors. The Corporation's liability in respect of insured deposits will arise in the following cases: If any direction is issued or any prohibition or order or scheme is made under any of the provisions of the Banking Regulation Act, 1949 and such direction, prohibition, order or scheme provides for restrictions on depositors of such bank, the Corporation pays to each depositor, total amount of his deposit amount (in the same capacity and in the same right) as on the date of issue of direction/ prohibition/order/ scheme of the bank by DICGC upto a maximum limit of ₹ 5 lakh. If a bank goes into liquidation, the Corporation pays to each depositor, directly or through the liquidator, total amount of his deposit amount (in the same capacity and in the same right) as on the date of deregistration of the bank by DICGC upto a maximum limit of
₹ 5 lakh.
If a bank is reconstructed or amalgamated with another bank and the Scheme of reconstruction or amalgamation does not entitle a depositor to get credit for the full amount of his deposit, the Corporation will arrange to pay to each depositor through the reconstructed bank or the transferee bank an amount equivalent to the shortfall between the amount due to the depositor under the insurance scheme and the amount of Credit received by him under the scheme of reconstruction or amalgamations, as on the date of deregistration of the bank by DICGC.

For further information please visit the website of the Corporation.