NewsStocksOver 97% of Bank Accounts Insured by DICGC at FY25 End, Coverage Reaches ₹100.12 Lakh CroreOver 97% of Bank Accounts Insured by DICGC at FY25 End, Coverage Reaches ₹100.12 Lakh Crore
DICGC insured 97.6% of bank accounts by number and 41.5% of deposits by value totaling ₹100.12 lakh crore as of March 2025. The deposit insurance fund grew 15.2% year-on-year to ₹2.29 lakh crore, with the corporation settling ₹476 crore in claims while recovering ₹1,309 crore during FY25. Coverage extended to 1,982 banks with ₹5 lakh insurance per depositor at 12 paise premium per ₹100 deposits.
*this image is generated using AI for illustrative purposes only.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) achieved significant coverage milestones in FY25, insuring 97.6% of bank accounts by number and 41.5% of deposits by value as of March 2025, according to latest Reserve Bank of India data. This comprehensive coverage demonstrates the robust protection framework for depositors across India's banking system.
Deposit Insurance Coverage Statistics
DICGC's insurance coverage reached substantial levels during FY25, protecting a vast majority of depositors while maintaining strong fund balances.
| Parameter: | FY25 | FY24 | Change |
|---|---|---|---|
| Total Bank Deposits: | ₹241.08 lakh crore | - | - |
| Insured Deposits (Value): | ₹100.12 lakh crore | ₹94.12 lakh crore | +6.4% |
| Coverage by Value: | 41.5% | 43.1% | -1.6 pp |
| Coverage by Account Number: | 97.6% | - | - |
| Fund Balance: | ₹2.29 lakh crore | - | +15.2% YoY |
The corporation provides insurance cover up to ₹5.00 lakh per depositor across commercial and cooperative banks. Despite the slight decrease in coverage percentage by value, the absolute amount of insured deposits grew by 6.4% year-on-year, reflecting the overall expansion of the banking sector.
Claims Settlement and Recovery Performance
DICGC demonstrated strong operational efficiency in FY25 through its claims management activities. The corporation settled ₹476.00 crore of claims through the deposit insurance fund while achieving total recoveries of ₹1,309.00 crore during the fiscal year. This recovery amount significantly exceeded the claims settled, contributing to the fund's robust growth.
The deposit insurance fund balance reached ₹2.29 lakh crore as of March 2025, marking a 15.2% year-on-year increase. This growth reflects both the premium collections from banks and the net positive impact of recoveries exceeding claims settlements.
Premium Structure and Bank Coverage
Since its inception in 1961, DICGC has maintained a flat rate premium structure, charging banks 12 paise per ₹100 of assessable deposits. This consistent pricing mechanism has enabled the corporation to build substantial reserves while providing comprehensive coverage across the banking sector.
| Coverage Details: | Numbers |
|---|---|
| Total Banks Covered: | 1,982 |
| Commercial Banks: | 139 |
| Cooperative Banks: | 1,843 |
| Premium Rate: | 12 paise per ₹100 |
| Insurance Limit: | ₹5.00 lakh per depositor |
Payment banks benefit from nearly complete deposit insurance coverage since they can accept only up to ₹2.00 lakh deposit per person, well within the ₹5.00 lakh insurance limit.
Regulatory Framework Enhancement
In December 2025, the Reserve Bank approved a risk-based deposit insurance framework for banks, marking a significant evolution from the traditional flat-rate system. This new framework aims to incentivize sound risk management practices among banks and promote overall financial stability in the banking sector.
The comprehensive coverage achieved by DICGC, protecting over 97% of bank accounts by number, underscores the effectiveness of India's deposit insurance system in safeguarding depositor interests while maintaining financial sector stability.
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