Bank insurance of 5 lakhs cover by dicgc
Querist :
Anonymous
(Querist) 01 June 2021
This query is : Resolved
Sir,
I am a Sr.Citizen and need to know about DICGC COVER in order to save my hardearned money in the bank and would like to have clarifications on following:
1) One joint account in a bank which is covered by DICGC............
First Holder myself, second holder my wife and third holder my son on anyone or survivor.
I have opened FDs of 5 Lakhs each in single names i.e. myself, my wife and my son (5 X 3 = 15) and have different customer IDs for each one of us but one joint saving account.
3) I have opened one more set of FDs in joint names as follows :
a) 5 lakhs - My wife first holder, I am second holder and my son third holder
b) 5 Lakhs - I am first Holder, my wife second holder and my son third holder
c) 5 Lakhs - My son first holder, I am second holder and my wife third holder
( 5 X 3 = 15 Lakhs).
Now, the savings account is one, three customer IDs and total FDs are 30 Lakhs.
I would like to know as to whether all thirty lakhs are covered by DICGC.
RBI RULES ON DICGC is very confusing and not clear. Definition of different Rights and capacities and the examples given by them are not understood by me.
Grateful your guidance on above . At this age I do not have the capacity to take any risk as I am living is on interest no other source of income whatsoever. My FDs are maturing this month end and would like to take all precautions.
Thanks and regards
Roland Noronha
kavksatyanarayana
(Expert) 01 June 2021
As obtained from the website of the DICGC, if individuals open more than one joint accounts in which their names are not in the same order, for example, A, B and C; C, B and A; C, A, and B; A, C and B; or group of persons are different say A, B, and C, and A, B, and D, etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately up to rupees five lakhs to every such joint account where the names appearing in different order or names are different.
ashok kumar singh
(Expert) 02 June 2021
agreed with views of earlier experts, therefore no further comments, so far.
thanks
T. Kalaiselvan, Advocate
(Expert) 03 June 2021
Deposit Insurance and Credit Guarantee Corporation:
DICGC insures all bank deposits, such as saving, fixed, current, recurring deposit for up to the limit of Rs. 500,000 of each depositor in a bank
if there are more accounts in same bank, all of those are treated as a single account. The insurance premium is paid by the insured banks itself. This means that the benefit of deposit insurance protection is made available to the depositors or customers of banks free of cost.
Currently, the insurance cover offered by the DICGC covers all different accounts of one depositor held with different branches of the same bank for maximum of Rs 5 lakh. Therefore, if you have more than one account with the same bank (even if in different branches), then, too, you will be insured for Rs 5 lakh only.
DICGC insures all bank deposits, such as saving, fixed, current, recurring deposit for up to the limit of Rs. 500,000 of each depositor in a bank.
Presently the banks have to pay a sum to the DICGC as insurance premium which insures all kinds of bank deposits up to a limit of ₹5,00,000. In case a stressed bank had to be liquidated, the depositors would be paid through DICGC.
