How does the DICGC scheme help when a bank fails?
Updated: 04 Jul 2022, 03:36 PM IST
TL;DR.Banks are insured by the DICGC, which explains why deposits with them are secured to some extent. The DICGC insures deposits up to ₹5 lakhs, unbiased of how much money is deposited or how many investments are made with the same bank.
RBI's subsidiary DICGC scheme helps pay off bank depositors in case of liquidation or amalgamation.