Insurance Scheme for Cooperative Bank Depositors

All eligible cooperative banks as defined in the Section 2 (gg) of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (DICGC Act) are covered under the Deposit Insurance Scheme. At present, all cooperative banks in all States and Union Territories are covered under the scheme. Union Territories of Lakshadweep and Dadra and Nagar Haveli do not have any Cooperative Bank. Cooperative Societies, not being banks, are not covered under deposit insurance.

Under Section 16 (1) of the DICGC Act, the current insurance cover available per depositor per bank in the same right and capacity is ₹ 1 lakh.

The details of insurance premium collected and payments by the Deposit Insurance and Credit Guarantee Corporation towards claim settlement, in respect of Co-operative Banks, during the last three years are as under:

At present, there is no proposal to increase the existing deposit insurance cover of ₹ 1 lakh.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.