In its FSR report, RBI stated that while the existing system is simple to understand and administer, it does not differentiate between banks based on their soundness. It is, therefore, proposed to introduce a Risk Based Premium model which will help banks that are sounder to save significantly on the premium paid.
The Deposit Insurance and Credit Guarantee Corporation (DICGC), under the DICGC Act, 1961, has been operating the deposit insurance scheme since 1962 on a flat rate premium basis. At present, the banks are charged a premium of 12 paise per Rs 100 of assessable deposits.
Deposit insurance premium received by the DICGC grew by 9.6 per cent (y-o-y) to Rs 14,382 crore during H1:2025-26, of which, commercial banks had a share of 94.8 per cent.
The Deposit Insurance Fund (DIF) with the DICGC is primarily built out of the premium paid by insured banks, investment income and recoveries from settled claims, net of income tax. DIF recorded a 15.4 per cent year on year increase to reach Rs 2.46 lakh crore as on September 30, 2025. The reserve ratio (i.e., ratio of DIF to insured deposits) increased to 2.31 per cent from 2.21 per cent a year ago.
The Deposit Insurance and Credit Guarantee Corporation (DICGC) extends insurance cover to depositors of all the banks operating in India. As on September 30, 2025, the number of banks registered with the DICGC was 1,957.
Deposit insurance premium collections rose during the period, with Rs 26,764 crore collected in 2024-25, comprising Rs 25,352 crore from commercial banks and Rs 1,412 crore from co-operative banks, as per DICGC data. In H1 2025-26, total premiums increased to Rs 14,382 crore, with contributions of Rs 13,633 crore from commercial banks and Rs 749 crore from co-operative banks.
