<P> Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India . It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities . DICGC insures all bank deposits, such as saving, fixed, current, Recurring_deposit for up to the limit of Rs. 100,000 of each deposits in a bank . </P> <P> The functions of the DICGC (Deposit Insurance and Credit Guarantee Corporation) are governed by the provisions of' The Deposit Insurance and Credit Guarantee Corporation Act, 1961' (DICGC Act) and' The Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961' framed by the Reserve Bank of India in exercise of the powers conferred by sub-section (3) of Section 50 of the said Act . </P> <P> A maximum of Rs 1, 00,000 is insured for each user for both principal and interest amount . If the customer has accounts in different banks, all of those accounts are insured to a maximum of Rs 1, 00,000 . However, if there are more accounts in same bank, all of those are treated as a single account . The insurance premium is paid by the insured banks itself . This means that the benefit of deposit insurance protection is made available to the depositors or customers of banks free of cost . The Corporation has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half - year periods . The Corporation may restore the registration of the bank, which has been de-registered for non-payment of premium, if the concerned bank makes a request in this behalf and pays all the amounts due by way of premium from the date of default together with interest . </P> <P> The Financial Sector Legislative Reforms Commission (FSLRC) was a body set up by the Government of India, Ministry of Finance, on 24 March 2011, to review and rewrite the legal - institutional architecture of the Indian financial sector . In its report the FSLRC recommended a regulatory structure constituting of seven agencies including a deposit insurance - cum regulatory agency (which was named as Resolution Corporation). The present DICGC will be subsumed into the Resolution Corporation which will work across the financial system . Drawing on the best international practice, the FSLRC proposal involved a unified resolution corporation that will deal with an array of financial firms such as banks and insurance companies; it will not just be a bank deposit insurance corporation . It will concern itself with all financial firms which make highly intense promises to consumers, such as banks, insurance companies, defined benefit pension funds, and payment systems . It will also take responsibility for the graceful resolution of systemically important financial firms, even if they have no direct links to consumers . </P>

Who pays the cost of deposit insurance with digcc