Sept. 2023 saw 17.5% year-over-year growth in deposit insurance funds with DICGC, according to the RBI FSR report

Sept. 2023 saw 17.5% year-over-year growth in deposit insurance funds with DICGC, according to the RBI FSR report

Sept. 2023 saw 17.5% year-over-year growth in deposit insurance funds with DICGC, according to the RBI FSR report

As of September 30, 2023, there were 2,009 banks on record, including 1,869 co-ops and 140 commercial banks.

Banks, investors, market players, and other interested parties are encouraged to provide feedback on the proposed directives by January 25, 2024.

According to the Reserve Bank of India's (RBI) financial stability report, the by the end of September 2023, the fund for deposit protection (DIF) with the Deposit Insurance as well as Credit Guarantee Corporation (DICGC) had grown by 17.5% year over year to Rs 1.83 lakh crore.

In order to preserve trust in the banking system and advance financial stability, DICGC offers insurance to bank depositors and covers all banks that are in operation in India.

There were 2,009 registered banks as of September 30, 2023, including 1,869 co-ops and 140 commercial banks.

forty commercial banks, including two local area banks, six payments banks, twelve minor finance banks, and forty regional rural banks.

A semi-annual document that offers information on changes in the nation's financial system is the Financial Stability Report.

A deposit insurance cap of Rs 5 lakh ensures complete protection for 97.9% of all deposit accounts, or 287.1 crore.

According to the study, as of September 30, 2023, 44.2 percent, or Rs 90.3 lakh crore, of the total assessable deposits of Rs 204.2 lakh crore had been insured.

The study also notes that the insured deposit ratio—that is, the proportion of insured deposits to assessable deposits—was greater in cooperative banks (63.9%) than in commercial banks because of the variations in average deposit sizes.

Banks: 43.1%.

In H1:2023–2024, the deposit insurance premium that DICGC collected grew by 10.6% (y-o-y) to Rs 11,628 crore, accounting for 94.3% of the total.

via banks that deal in commerce.

The main sources of funding for the DIF with DICGC are net investment income, recovery from resolved claims, and premiums paid by covered banks.

of income taxation.

DIF increased 17.5% (year over year) to Rs 1.83 lakh crore in September 2023.