Your deposits in Suryoday Small Finance Bank are safe

What is Deposit Insurance and Credit Guarantee Corporation?

DICGC, the second oldest deposit insurer in the world, is not just a regulatory body. It is a guardian of the interests of depositors, particularly small depositors. As a wholly-owned subsidiary of the RBI, created by an Act of Parliament, it is a specialized division of the Reserve Bank of India, under the jurisdiction of the Ministry of Finance, Government of India. It was established on 15 July 1978 under the Deposit Insurance and Credit Guarantee Corporation Act, 1961, to provide insurance of deposits and guarantee credit facilities.

It's important to note that all banks licensed by the RBI, including your Suryoday Small Finance Bank, are required to obtain DICGC insurance. This means that your deposits, up to the current limit of ₹5 lakh per depositor, are insured. In the unfortunate event of a bank failure, you can claim your insured amount directly from the DICGC, making the process of recovering your money straightforward and hassle-free.

Who pays the premium?

The DICGC charges a nominal deposit insurance premium, which is borne entirely by the insured bank.

Coverage by DICGC

DICGC insures all deposits, such as Savings, Fixed, Recurring, etc., up to a maximum ceiling amount of ₹5 lakh per depositor. The limit was increased from ₹1 lakh to ₹5 lakh on 4 February 2020. The DICGC insures principal and interest up to a maximum amount of ₹5 lakh. For example, if an individual had an account with a principal amount of 4,95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 4,99,000. If, however, the principal amount in that account was five lakhs, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.

As a bank depositor, you must know how safe your hard-earned money is to manage your risks. Rest assured, your Suryoday Small Finance Bank is a scheduled commercial bank, and your deposits are insured under Deposit Insurance and Credit Guarantee Corporation (DICGC) coverage. This safety net ensures that your money is secure, allowing you to make informed financial decisions.