The functions of the DICGC are governed by the provisions of 'The Deposit Insurance and Credit Guarantee
Corporation Act, 1961' (DICGC Act) and 'The Deposit Insurance and Credit Guarantee Corporation General
Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section
(3) of Section 50 of the said Act.
The Head Office of the Corporation is at Mumbai. An Executive Director is in overall charge of its day-to-day operations. It has four Departments, viz. Accounts, Deposit Insurance, Credit Guarantee and Administration, under the supervision of other Senior Officers.
The Head Office of the Corporation is at Mumbai. An Executive Director is in overall charge of its day-to-day operations. It has four Departments, viz. Accounts, Deposit Insurance, Credit Guarantee and Administration, under the supervision of other Senior Officers.
To contribute to financial stability by securing public confidence in the banking system through provision of deposit insurance, particularly for the benefit of the small depositors.
To be recognised as one of the most efficient and effective deposit insurance providers, responsive to the needs of its stakeholders.
1948
The concept of insuring deposits kept with banks received attention for the first time after the banking crises in Bengal.
1950
The Rural Banking Enquiry Committee supported the concept.
1960
- The failure of Laxmi Bank and the subsequent failure of the Palai Central Bank catalysed the introduction of deposit insurance in India.
- Government of India, in consultation with the Reserve Bank of India, introduced a Credit Guarantee Scheme in July 1960. The Reserve Bank of India was entrusted with the administration of the Scheme, as an agent of the Central Government, under Section 17 (11 A) [a] of the Reserve Bank of India Act, 1934 and was designated as the Credit Guarantee Organization (CGO) for guaranteeing the advances granted by banks and other Credit Institutions to small scale industries. The Reserve Bank of India operated the scheme up to March 31, 1981.
1961 - 62
The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961, and received the assent of the President on December 7, 1961. The Deposit Insurance Corporation commenced functioning on January 1, 1962. The first Board of the Corporation was headed by Shri H. V. R. Iyengar, Governor, Reserve Bank of India. The Deposit Insurance Scheme was initially extended to functioning commercial banks. India was the second country in the world to introduce such a scheme - the first being the United States in 1933.
1963
1st claim settled by DICGC was towards the depositors of the Bank of China in 1963.
1968
The Deposit Insurance Scheme was extended to Co-operative banks.
1971
The RBI promoted a public limited company on January 14, 1971, named as the Credit Guarantee Corporation of India Ltd. (CGCI).
1975
The Deposit Insurance Scheme was extended to Regional Rural Banks (RRBs).
1978
With a view to integrating the functions of deposit insurance and credit guarantee, the two organisations, viz. the DIC and the CGCI, were merged and the Deposit Insurance and Credit Guarantee Corporation (DICGC) which came into existence on July 15, 1978. The Deposit Insurance Act, 1961 was amended and renamed as ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’.
1979
CHANGE IN PREMIUM CYCLE - The premium which was previously collected quarterly from the insured banks was decided to be collected half yearly.
1981
Effective from April 1, 1981, the Corporation extended its guarantee support to credit granted to small scale industries also, after the cancellation of the Government of India's credit guarantee scheme.
1989
With effect from April 1, 1989, guarantee cover was extended to the entire priority sector advances, as per the definition of the Reserve Bank of India.
1993
The rate of penaI interest payable by insured banks for default in payment of insurance premium was increased to 8 percent above the Bank Rate (previously Bank Rate) with effect from 1 January 1993.
1995
With effect from April 1, 1995, all housing loans were excluded from the purview of guarantee cover by the Corporation.
2002-03
The Corporation launched its website www.dicgc.org.in
2003-04
CHANGE IN PERIODICITY OF PREMIUM CYCLE - With a view to simplifying the procedure for payment of deposit insurance premium, the Corporation revised the procedure for payment of deposit insurance premium by changing the periodicity from January - June and July – December to April - September and October - March respectively to coincide with the half yearly and yearly closing of accounts of insured banks with effect from 1st October 2003.
2004-05
MEMBERSHIP OF IADI - The Corporation became a Member of International Association of Deposit Insurers (IADI) which is an umbrella organisation for deposit insurers the world over.
2006-07
INTRODUCTION OF THE CURRENT DICGC LOGO As part of public awareness programme, a suitable logo was introduced to show the well-known acronym of Deposit Insurance and Credit Guarantee Corporation and symbolize vigilance (two eyes), stability (green colour) and protection (curvilinear structure of four of the five letters).
2007-08
EXPEDITIOUS SETTLEMENT OF CLAIMS - The Corporation framed a policy guideline on expeditious settlement of claims of the depositors of insured banks to address the time lag between the issue of liquidation order and actual reimbursement to the depositor.
COMPLAINTS REDRESSAL CELL - The Corporation set up a complaints redressal cell for prompt redressal of complaints from the members of public against the Corporation.
2010-11
RATIONALISATION OF DI RETURNS - A consolidated statement named as half-yearly Rationalized Deposit Insurance (DI) Return was introduced from the half-year beginning October 1, 2010, by merging the half-yearly DI-01 return giving the assessable deposits and the amount of premium payable to the Corporation and the annual DI-02 return giving the distribution of deposit accounts according to the size of deposits for the purpose of computation of insured deposits.
2021-22
Amendment to the DICGC Act 1961 in August 2021 which enabled timebound interim payment to depositors of banks placed under ‘All Inclusive Directions (AID)’ by the RBI. Other amendments included:
1) raising the limit of 15 paise per ₹100 of deposits on insurance premium with the approval of RBI;
2) the DICGC, with the approval of its Board, could defer or vary the repayment period for the insured bank and charge penal interest of 2 per cent over the repo rate in case of delay.
2022-23
PUBLIC AWARENESS ACTIVITIES
- The Corporation initiated the use of a local messaging app for depositors’ awareness on deposit insurance, to maximise public outreach including in areas where banks have been placed under ‘All Inclusive Directions’ (AID) of the RBI or licences have been cancelled for availing claims from DICGC.
- Effective from September 1, 2023, all the insured banks were advised to display the DICGC logo and QR Code prominently on their web page.
- SMS intimation was sent to depositors of liquidated banks and AID bank at each stage of claim settlement i.e., on receipt of claim and on sanction of claim.
Shri Anup Kumar is a career Central Banker prior to joining Deposit Insurance and Credit Guarantee Corporation (DICGC), which is a wholly owned subsidiary of the Reserve Bank of India (Central Bank). Shri Anup Kumar has been with DICGC since February 2022.
