UPSC Civil Services Model Paper 1

Deposit Insurance and Credit Guarantee Corporation (DICGC):
● It is set up by the government under RBI to protect the depositors if a bank fails .
● It provides insurance protection to the depositor’s money by receiving a premium .
● It charges 10 paise per ₹100 of deposits held by a bank .
● The premium is paid by the banks and not passed on to the depositors .
● The deposit insurance cover is revised to ₹5 lakh in February 2020,
raising it from ₹ 1 lakh since 1993. So, statement 1 is correct .