Images: Shutterstock
Reserve Bank of India’s Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance for bank deposits up to ₹5 lakh per depositor per bank.
Launched in 1962, it makes bank deposits secure as it ensures depositors will get their money in case banks collapse. Until 2020, it covered deposits up to only ₹1 lakh per depositor.
In 1986, insured deposits stood at just ₹62,878 crore. Now, in 2025, they’re at over ₹100 lakh crore, marking a remarkable growth of 15,800%.
After liberalisation in the early 90s, incomes began to grow and banks started expanding. Households started to trust banks more, and a savings culture was in the making.
By 2006, insured deposits had already crossed ₹13 lakh crore. Even during the 2008 global crisis, bank deposits grew along with DICGC’s cover.
With substantial growth in the earnings of the middle-class and introduction of digital banking, insured deposits crossed ₹28 lakh crore by 2015.
The insurance cover under DICGC was increased to ₹5 lakh in February 2020. From ₹76 lakh crore in 2020, insured deposits increased to over ₹100 lakh crore in 2025.
In a diverse country like India, DICGC boosts people’s confidence in banks and highlights stability, transforming financial inclusion in the country.
Thanks for reading!
See next