DICGC insures eligible deposits with an insured bank up to ₹5 lakh per depositor per bank in the same right and capacity, including principal and interest within the cap. Savings, fixed, current and recurring deposits at the same bank are aggregated in that capacity. Coverage is automatic for eligible accounts and the bank pays the premium. DICGC's deposit-insurance guide explains exclusions and the ownership test.
Anita's bank-by-bank coverage
Anita holds ₹8 lakh at Bank A and ₹4 lakh at separately insured Bank B in individual capacity. At Bank A, no more than ₹5 lakh of her eligible amount is insured; at Bank B, up to ₹4 lakh is insured. The illustrative combined insured amount is ₹9 lakh, not ₹12 lakh. If instead she holds ₹5 lakh at each of four distinct insured banks, up to ₹20 lakh can be insured, assuming no other balances or ownership complications. A joint account may constitute a different right/capacity, but it is not an automatic bonus ₹5 lakh for everyone; co-ownership and exact account titles matter.
Timelines have conditions
For an insured bank placed under RBI All-Inclusive Directions, section 18A aims to settle covered claims within 90 days, subject to the bank supplying depositor information within its statutory timeline and other verification. The DICGC guidance does not promise every depositor cash exactly 90 days after any kind of bank distress or closure. Keep account documents and verify that the institution is on the current list of insured banks.
Premium framework changed in April, not February
DICGC announced the move to a risk-based premium framework in February 2026, but the implementation is 1 April 2026 according to its April instructions. The premium is paid by insured banks, not an extra charge levied directly on Anita's deposits. This change does not raise the ₹5 lakh per-depositor-per-bank coverage limit.
