Question 12
MediumOriginal questionDeposits in Indian banks are insured by which body?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The DICGC is a wholly owned subsidiary of the Reserve Bank and insures deposits up to five lakh rupees per depositor per bank.
The cover is per bank, so two accounts at the same bank share one limit while accounts at two banks have two.
IRDAI regulates insurance companies but does not itself insure anything.
Worth noting
The five-lakh limit covers principal and interest together, and applies to savings, current, fixed and recurring deposits alike.
- Concept
- Which body insures bank deposits
- Typical timeTypical
- 40 s
- Your timeYours
- —
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