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The Union Cabinet cleared the Financial Resolution and Deposit Insurance Bill, 2017 on June 14. The Resolution Corporation will be set up for dealing with the bankruptcy situation in banks, insurance companies and financial sector entities. It will be a successor to the Deposit Insurance and Credit Guarantee Corporation (DICGC).
- DICGC, a RBI subsidiary, provides insurance of deposits and guarantees credit
- It provides insurance to all commercial banks and most cooperative banks
- DICGC insures all deposits — savings, fixed, current, recurring — up to a maximum of Rs 1 lakh per depositor
- It covered 2,127 banks and 1682 million accounts in the year of 2015-2016
- Total value of insured deposits stood at Rs 28,26,400 crore at the end of March 2016
- The accumulative claims paid by the DICGC till March 2016 amount to Rs 5,000 cr