Is my money safe in a bank? What is DICGC insurance?
Updated · CardKhoj Editorial Team
Short answer
Yes. Deposits in every RBI-licensed bank in India — public, private, foreign, small finance, cooperative and regional rural banks — are insured by DICGC up to ₹5 lakh per depositor per bank, covering principal and interest together. If you have more than ₹5 lakh, spreading it across banks keeps all of it insured.
What DICGC covers
- Savings, current, fixed and recurring deposits.
- Up to ₹5 lakh per depositor per bank — all your accounts at the same bank are added together.
- Accounts held in different capacities (for example, individually and jointly) are treated separately.
What it does not cover
- Deposits with NBFCs, corporate FDs and post office schemes (post office schemes are backed by the Government instead).
- Mutual funds, shares and insurance products sold by banks.
How fast is the payout?
If the RBI places restrictions on a bank, insured depositors are generally entitled to receive their money (up to the limit) within about 90 days.
Practical tip
If you hold large deposits, split them across two or three strong banks so every rupee stays within the ₹5 lakh insured limit.
This answer is general information, not personalised financial or tax advice. Rules, rates and limits change — confirm with your bank, the RBI or a qualified adviser before making decisions.