Let me give you a broad overview of the deposit insurance system in India. India’s Deposit Insurance and Credit Guarantee Corporation (DICGC) was set up way back in 1962 as per the provisions of an Act of Parliament, i.e., DICGC Act, 1961. It is the second oldest ongoing deposit insurance agency in the world.
DICGC is a wholly-owned subsidiary of India’s central bank, viz., Reserve Bank of India. It is virtually a Pay-Box System as its role is limited to settlement of claims as per extant rules and regulations. Table 1 below would give you an idea of the magnitude of claim settlement operations of DICGC.