Question

In the event of a bank failure, the Deposit Insurance and Credit Guarantee Corporation (DICGC) protects bank deposits that are payable in India.
Which of the following deposits will be insured by the DICGC ?

• A. Deposits of foreign governments
• B. Deposits of Central/state governments
• C. Inter-bank deposits
• D. All the above
• E. None of the above

Answer 1

The correct option is E None of the above

In the event of a bank failure, DICGC protects bank deposits that are payable in India.
The DICGC insures all deposits such as savings, fixed, current, recurring, etc. except the following types of deposits:
(i) Deposits of foreign Governments;
(ii) Deposits of Central/State Governments;
(iii) Inter-bank deposits;
(iv) Deposits of the State Land Development Banks with the State co-operative bank;
(v) Any amount due on account of any deposit received outside India;
(vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India.