Answer Book question
Not by DICGC. The RBI's deposit insurance covers up to ₹5 lakh per depositor per bank in every commercial bank and every cooperative bank, including Kerala's district cooperative banks and urban cooperative banks. It does not cover primary cooperative societies: the service cooperative banks, PACS and credit societies that most Kerala villages actually bank with. Kerala runs its own Co-operative Deposit Guarantee Scheme for societies that join and pay into it; check that your society is a paid-up member and what the current ceiling is, because the cover is only as good as the society's subscription and the fund's size.
Not by DICGC. The RBI's deposit insurance covers up to ₹5 lakh per depositor per bank in every commercial bank and every cooperative bank, including Kerala's district cooperative banks and urban cooperative banks. It does not cover primary cooperative societies: the service cooperative banks, PACS and credit societies that most Kerala villages actually bank with. Kerala runs its own Co-operative Deposit Guarantee Scheme for societies that join and pay into it; check that your society is a paid-up member and what the current ceiling is, because the cover is only as good as the society's subscription and the fund's size.
A family in Adoor holds ₹12 lakh in fixed deposits at the local service cooperative bank because the rate is a point higher. After a mismanagement scandal, withdrawals are restricted. There is no DICGC claim: the institution is a society, not a bank. Their recourse is the state's guarantee scheme, if the society was a member, and the Registrar's liquidation and recovery process.
DICGC, an RBI subsidiary, insures deposits in commercial banks, RRBs, local area banks and cooperative banks that are registered with it, up to ₹5 lakh per depositor per bank including interest, across all branches and accounts, with a 90-day settlement clock once restrictions are imposed. The limit was raised from ₹1 lakh in February 2020 and the government has said it is considering raising it again; verify.
Primary cooperative societies are expressly outside DICGC because they are regulated by the state Registrar, not RBI, even when their signboard says 'bank'. (P) 3/2012, runs a guarantee scheme into which member societies pay a small percentage of deposits; the 2026 amendment to the scheme refers to compensation to a depositor of up to ₹10 lakh, with a depositor-side contribution, and excludes a society's deposits from cover for any period in which its contribution is overdue.
The Board's scheme, the society's membership status and the current ceiling should be confirmed directly with the Board and the society before relying on them. The 2026 RBI Ombudsman scheme now covers state and district cooperative banks, but still not primary societies; grievances against a society go to the Registrar of Cooperative Societies and the Co-operative Arbitration Court.
Is the institution a cooperative bank (RBI-licensed, DICGC sticker displayed) or a cooperative society (Registrar-regulated)? Ask to see the DICGC registration or the licence For a society: written confirmation of membership in the Kerala Deposit Guarantee Scheme and the year's contribution paid The current guarantee ceiling under the Kerala scheme Spread: keep no more than the insured or guaranteed amount in any one institution The society's latest audited balance sheet and audit classification (ask; members are entitled to it)
Reading 'bank' on the signboard and assuming RBI. In Kerala, 'service cooperative bank' is almost always a society. Also: chasing the extra one percent with the family's entire savings.
Kerala's cooperative sector holds an enormous share of rural savings and has had well-publicised failures. The state scheme is real but is a guarantee fund, not RBI insurance; it depends on member societies paying in. A reasonable rule: deposits with a society limited to what the state scheme guarantees and the family can afford to wait for; the rest in DICGC-insured institutions, split across banks.
₹12 lakh in one society: potentially uncovered above the state ceiling, and uncovered entirely if the society's contribution lapsed. ₹12 lakh split as ₹4 lakh in the society, ₹4 lakh in a DICGC-insured cooperative bank and ₹4 lakh in a commercial bank: every rupee protected by one scheme or another.
If the institution is a genuine cooperative bank, DICGC applies and this warning does not. Pension and welfare fund deposits held by societies on behalf of members follow the society's own rules.
Ask the institution in writing whether it is DICGC-insured or a Kerala Deposit Guarantee Scheme member Reallocate deposits above the covered amounts For a troubled society: file with the Registrar and the Deposit Guarantee Fund Board promptly; claims have timelines
My bank locker was robbed. Is the bank liable? Should my parents keep all their money in fixed deposits? (Vol 1)
Family finances
DICGC Act, 1961 and DICGC FAQs (coverage and exclusions) · Kerala Co-operative Societies Act, 1969, Section 57B; Kerala Co-operative Deposit Guarantee Scheme, 2012 and Amendment Scheme, 2026 · Kerala Co-operative Deposit Guarantee Fund Board Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts.
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This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.