To protect the interests of the depositors, the Deposit Insurance Corporation of India was established by an Act of Parliament in 1962. It provides insurance cover on deposits held with the commercial and co-operative banks and the scheme of deposit insurance we introduced with effect from 1st January 1962.
In 1978, the credit guarantee corporation of India was merged with the deposit insurance corporation and the corporation has been renamed as ‘Deposit Insurance and Credit Guarantee Corporation’ with effect from 15th July 1978.
The corporation provides protection to small depositors by insurance and provides guarantee to the banks for loans extended to small borrowers. Presently deposits with banks up to Rs.1, 00,000 per account is guaranteed for repayment by the Corporation.