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Deposit Insurance
Deposit insurance, provided by the RBI’s subsidiary DICGC, protects depositors if a bank fails. Each depositor is covered for up to ₹5 lakh per bank, including principal and interest, across savings, fixed and recurring deposits.
Why It Matters
It is why ordinary savers do not need to fear losing everything if their bank collapses.
In India
When a cooperative bank fails, depositors can receive up to ₹5 lakh from DICGC within about 90 days, even if the bank’s own recovery takes years.