In its latest report, the Reserve Bank of India (RBI) highlighted that as on March 31, 2025, the insured deposit ratio (IDR) for cooperative banks stood at 61.9%, significantly higher than the 40.4% IDR recorded for commercial banks.
The data, published by the RBI, shows that out of 1,982 banks registered with the Deposit Insurance and Credit Guarantee Corporation (DICGC), 1,843 were cooperative banks, while the remaining 139 were commercial banks, including public sector banks, private sector banks, regional rural banks (RRBs), small finance banks (SFBs), payment banks, and local area banks.
Among cooperative institutions, Urban Cooperative Banks (UCBs) recorded an insured deposit ratio of 65.1%, followed closely by District Central Cooperative Banks (DCCBs) at 64.3%, while State Cooperative Banks (StCBs) had a lower IDR of 42.2%.
As on March 31, 2025, the total insured deposits of cooperative banks stood at Rs 7,72,806 crore, while their assessable deposits were Rs 12,48,879 crore, resulting in an overall IDR of 61.9%.
The DICGC provides insurance coverage of up to Rs 5 lakh per depositor per bank. As of March 31, 2025, 97.6% of total deposit accounts, amounting to 293.7 crore accounts, across all registered banks were fully insured. In terms of value, 41.5% of total assessable deposits, amounting to Rs 241 lakh crore, were insured under the DICGC scheme.
The report also noted a significant rise in deposit insurance premiums. The DICGC collected Rs 26,764 crore in FY 2024–25, marking a 12.1% year-on-year increase. Notably, commercial banks contributed 94.7% of the total premium collected.
Mohd Farizul
The cooperative banks follow most of the norms of RBI to safeguard its stakeholders yet these banks are treated as most vulnerable and face number of action points in their regular inspection by Regulators.
The depositors get higher interest apart from personal services as compared to private and public sector banks.