Question :
Which of the following statements is/are correct about DICGC (Deposit Insurance and Credit Guarantee Corporation)?
I. DICGC provides insurance coverage to bank deposits up to ₹5 lakh per depositor per bank.
II. DICGC is a subsidiary of the Reserve Bank of India.
III. DICGC is responsible for providing guarantees on loans given by banks to businesses.
IV. The insurance coverage is applicable for savings, current, and fixed deposits.
V. DICGC's services are applicable only to public sector banks.
1. I, II, III, and IV are correct.
2. II, III, IV, and V are correct.
3. I, II, IV, and V are correct.
4. I, II, and IV are correct.
5. Only I and II are correct.
Solution :
• Statement I: Correct. DICGC insures deposits in commercial banks, regional rural banks, and local area banks up to ₹5 lakh per depositor.
• Statement II: Correct. DICGC is indeed a subsidiary of the Reserve Bank of India.
• Statement IV: Correct. The insurance coverage applies to savings, current, and fixed deposits.
• Statement III: Incorrect. DICGC only provides insurance for deposits, not guarantees for loans.
• Statement V: Incorrect. DICGC applies to all banks, both public and private sector.
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