The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI, insures savings accounts, current accounts, fixed and recurring deposits. The ₹5 lakh limit covers principal and interest together, per depositor per bank. Spreading large sums across banks keeps more money insured.
Finance glossary
What is Deposit insurance (DICGC)?
Insurance that protects bank deposits up to ₹5 lakh per depositor in each bank if the bank fails.