Is my fixed deposit of ₹1 Lakh insured?

Fixed deposit insurance for a ₹1 lakh deposit in India is generally covered by specific protections.

However, there may be exceptions. Here is what you need to know about the insurance of your fixed deposit:

• Credibility-Based Safety: Your ₹1 lakh deposit benefits from the financial institution's strong credit ratings (AA+/Stable) and long-standing reputation in the financial sector. These ratings reflect a high degree of safety and reliability, offering peace of mind.
• Eligible Banks: Most commercial, co-operative, and regional rural banks in India are generally registered with DICGC, ensuring your deposit’s safety.
• Check Insurance Status: Financial institutions often display DICGC leaflets at branches. You can ask the staff to confirm whether your financial institution is insured.
• Same Bank, Same Capacity: If you hold multiple deposits with the same financial institution under your name, the combined amount is typically insured up to ₹5 lakh in total, rather than each deposit being insured individually.
• Non-Bank Deposits: Fixed deposits held with companies or non-banking financial companies (NBFCs) may not be insured by the DICGC, so it’s important to confirm their specific protection policies independently.
• Claim Process: If a financial institution closes down, DICGC generally handles payouts, but you may need to submit a claim form.