The Deposit Insurance and Credit Guarantee Corporation (DICGC) has created the Daava Soochak online service to allow depositors to track the insurance claim status of their deposits in bankrupt banks. To track the status, depositors must enter their registered mobile phone numbers with the bankrupt banks on the Daava Soochak platform. DICGC, a subsidiary of the Reserve Bank of India (RBI), guarantees insurance protection to each depositor of up to Rs 5 lakh.
According to official data, 97.8 per cent of all Indian bank accounts are insurance-protected. In 2023-24 alone, DICGC settled claims worth Rs 1,432 crore for liquidated banks and those under All-Inclusive Directions (AID), imposed under the Banking Regulation Act, 1949, to prevent any bank affairs detrimental to the depositors’ interests or prejudicial to its interests.
As of March 2024, 1,997 banks were registered with the DICGC for deposit insurance, comprising 140 commercial banks and 1,857 cooperative banks. This programme seeks to simplify the claim procedure and give depositors with greater transparency.
Function of Daava Soochak
Deposits of bankrupt banks, including those under RBI moratorium and not yet liquidated, are insured up to Rs 5 lakh, which covers both principle and interest.
According to the DICGC Act, 1967 (modified in 2021), depositors are entitled to obtain their claims within 90 days. Prior to this modification, depositors had to wait for the RBI to decide whether or not the bank needed to be liquidated.
How To Track The Claim Status?
Depositors must visit the DICGC website (www.dicgc.org.in) and look for the tracker prominently featured on the homepage. Then, choose the bank from the dropdown list and enter their phone number. Additionally, according to DICGC,“Depositors can view the status of their claims for banks placed under All Inclusive Directions (AID) after April 1, 2024.”
AID allude to the RBI’s limits on certain bank operations. Currently, the dropdown AID list contains the names of six co-operative banks: National Urban Co-operative Bank Ltd (Pratapgarh), Sarvodaya Co-operative Bank, Amanath Co-operative Bank, Konark Urban Co-operative Bank, and Shirpur Merchants' Co-operative Bank.
Types Of Insured Deposits
As per the DICGC Act, all types of deposits, such as savings, fixed, current, and recurring—essentially retail deposits—are covered under this insurance scheme. Foreign governments, central or state governments, inter-bank deposits, any deposit received outside India, etc., are not covered under this insurance. Also, commercial and co-operative banks are covered, but primary co-operative societies are not included in the insurance.
Are Bank Deposits Insured Separately?
The insurance cover is applied separately if your deposits are spread across multiple banks. So, diversifying your deposits across banks may help optimise insurance coverage. You could also maintain joint accounts in the same bank so that the account holders' names are mentioned in different orders. Similarly, suppose you maintain bank accounts as a guardian of a minor, partner of a firm, or director of a corporation. In that case, the coverage of up to Rs 5 lakh will apply individually.
