Banking
DICGC Deposit Insurance: What ₹5 Lakh Covers
Understand the per-depositor, per-bank insurance limit for eligible bank deposits and why multiple accounts at one bank do not create separate ₹5 lakh covers.
About this guide
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What is covered
Deposit insurance generally covers eligible savings, current, fixed and recurring deposits at an insured bank, including principal and accrued interest, up to the statutory limit. The official list of insured banks should be checked when certainty is needed.
Why three accounts do not mean ₹15 lakh
Suppose a person holds ₹2 lakh in savings and ₹4 lakh in fixed deposits at the same bank in the same capacity. The balances are aggregated to ₹6 lakh, and the maximum insurance is ₹5 lakh. Splitting the balance across branches of the same bank does not change this aggregation.
Different banks
If the person holds eligible deposits at two separately insured banks, the limit is applied separately at each bank. Two brands may not always mean two banks after a merger, so legal bank identity matters.
Different rights and capacities
Accounts held as an individual, as a partner, as a guardian or in another legally distinct capacity may be treated separately under the official rules. Joint-account coverage also depends on names and order. Do not restructure ownership only from a simplified example; confirm with the bank or DICGC.
What deposit insurance is not
It is not insurance against investment loss in mutual funds, shares, bonds or crypto assets. It also does not mean every bank product marketed through a banking app is a deposit of that bank. Identify the actual issuer before relying on DICGC protection.
Sources and verification
Use these references to verify this banking guide. Check the document date, relevant period and any conditions before relying on a figure or rule.
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