Reserve Bank of India (RBI) Governor Shaktikanta Das on Sunday cautioned depositors against high returns. Das has cautioned the investors that they need to be careful while wanting to get high returns. In the program ‘Depositors First: Guaranteed Time-bound Deposit Insurance Payment up to Rs 5 lakh’, Das on Sunday said that in high returns, the risk also remains high.
Das said, “The risk is also high in this, so investors need to be careful with the desire to get high returns. The Reserve Bank is committed to ensuring the strength and combative capability of the banking system.”
What is DICGC, what does it work?
DICGC stands for Deposit Insurance Credit Guarantee Corporation. It is a corporation under the Reserve Bank, called the Deposit Insurance and Credit Guarantee Corporation. Basically it is a subsidiary of Reserve Bank of India and it provides insurance cover on bank deposits.
DICGC secures deposits up to Rs 5 lakh in schemes like Savings, Current, Recurring Account or Fixed Deposit (FD) etc. in banks. If a bank becomes a defaulter, then DICGC will pay a maximum amount of up to Rs 5 lakh to each of its depositors including the principal amount and interest.