About DICGC

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Topic: About DICGC

Number of Questions: 10

Pre-Readings: Subsidiaries of RBI

1. In which year DICGC Act was passed?
   A) 1978
   B) 1962
   C) 1961
   D) 1979
   
   View answer

     Option C
   Explanation: The functions of the DICGC are governed by the provisions of DICGC Act 1961 framed by the Reserve Bank of India.
2. In which year DICGC was formed?
   A) 1978
   B) 1962
   C) 1961
   D) 1979
   
   View answer

     Option A
   Explanation: Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978. DICGC was formed by merging Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI)
3. Which scheme of DICGC Is currently not functional
   A) Insurance for Current Deposits
   B) Insurance for Recurring Deposits
   C) Insurance for Fixed Deposits
   D) Credit guarantee scheme
   
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   Option D
   Explanation: The credit guarantee scheme of DICGC is presently not operative due to availability of alternative guarantee schemes.
4. What is the authorized capital of DICGC?
   A) Rs 10 crore
   B) Rs 50 crore
   C) Rs 100 crore
   D) Rs 500 crore
   
   View answer

   Option B
   Explanation: Authorised Capital : Rs 50 Crore.
5. Where is the headquarters of DICGC located?
   A) Delhi
   B) Mumbai
   C) Kolkata
   D) Banglore
   
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   Option B
   Explanation: Mumbai
6. What is the maximum deposit amount insured by the DICGC?
   A) Rs 1 lakh
   B) Rs 2 lakh
   C) Rs 20 lakh
   D) Rs 5 lakh
   
   View answer

   Option A
   Explanation: Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest
7. Which of the following deposit(s) is/are not covered under DICGC?
   A) Deposits of Central/State Governments
   B) Inter-bank deposits
   C) Any amount due on account of and deposit received outside India
   D) All of the above
   
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   Option D
   Explanation: DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits. i. Deposits of foreign Governments; ii. Deposits of Central/State Governments; iii. Inter-bank deposits iv. Deposits of the State Land Development Banks with the State co-operative banks;  v. Any amount due on account of and deposit received outside India   vi.Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.
8. Who is the present Chairman of DICGC?
   A) N. S. Vishwanathan
   B) Viral V. Acharya
   C) B.P. Kanungo
   D) Mahesh Kumar Jain
   
   View answer

   Option C
   Explanation:
9. Identify the false statement with respect to DICGC.
   A) DICGC was formed by merging Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI)
   B) If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.
   C) Governor of the RBI is the Chairman of DICGC
   D) The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount upto Rupees one lakh is paid.
   
   View answer

   Option C
   Explanation: DG is the chairman
10. Who can inspect the insured banks by DICGC?
    A) DICGC
    B) NABARD
    C) RBI
    D) Ministry of Finance
    
    View answer

    Option C
    Explanation: On Corporation’s request, the RBI is required to undertake / cause the inspection / investigation of an insured bank.