Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of the Reserve Bank of India. The DICGC was established to safeguard depositors in the event of a bank’s failure. Depositors from banks under stress can claim up to Rs 5 lakh from the DIC GC, contingent upon their submission of willingness and subsequent verification. Despite the current inability to withdraw from their savings, current, or other accounts due to the imposed restrictions, the bank can still use depositors’ funds to offset any loans they might owe. This implies that any outstanding loans a depositor might have with the bank could be settled using their deposit balance. The scheme significantly eliminates financial risks for the vast majority of the bank’s customers, especially since around 90 percent of the 1.3 lakh depositors at the bank are fully covered under this scheme. This mechanism enables them to reclaim their insured amount, including both the principal and interest, up to the specified limit. The 2021 amendment to the D ICGC Act stipulates that depositors should expect to receive their funds within 90 days from the start of the claim process. Customers can then monitor their claim status online via Daava Soochak, an online tool introduced by DicGC in 2024, designed to streamline and clarify the claims process.
