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    Question

    Among the options below, deposits in which one is not

    insured by the DICGC?
    A RRB Correct Answer Incorrect Answer
    B Commercial banks Correct Answer Incorrect Answer
    C Local area bank Correct Answer Incorrect Answer
    D Foreign banks in India Correct Answer Incorrect Answer
    E NBFC Correct Answer Incorrect Answer

    Solution

    Commercial Banks: All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC. Cooperative Banks: All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the Reserve Bank are covered under the Deposit Insurance System. At present all co-operative banks other than those from the States of Meghalaya, and the Union Territories of Chandigarh, Lakshadweep and Dadra and Nagar Haveli are covered under the deposit insurance system of DICGC. Primary cooperative society and NBFC s are not insured by the DICGC.

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