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India’s general deposit-insurance limit is ₹5 lakh per depositor per bank, including principal and interest—but that limit does not automatically settle whether a particular NRE, NRO or FCNR(B) balance qualifies. DICGC’s FAQ excludes deposits received outside India, and its 2025 premium directions list Non-Resident Rupee Accounts and FCNR balances among exclusions for premium-return purposes. Because those statements do not resolve every account and funding scenario, check your specific account with your bank or DICGC.
What the ₹5 lakh limit means
The Deposit Insurance and Credit Guarantee Corporation (DICGC) says eligible deposits are insured up to ₹5,00,000 per depositor per bank, including both principal and interest. The limit applies to the combined eligible balance—not separately to each account. The DICGC FAQ describes the relevant circumstances as a bank’s liquidation or licence cancellation, specified merger or reconstruction, or an RBI restriction direction. DICGC’s FAQ
The FAQ illustrates how interest counts: eligible principal of ₹4,95,000 plus ₹4,000 in accrued interest totals ₹4,99,000. If principal alone is ₹5,00,000, interest above that amount takes the total beyond the insurance ceiling.
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How DICGC combines deposits
DICGC aggregates deposits held at different branches of the same bank when they are in the same right and capacity. A second account or another branch of that bank does not create another ₹5 lakh limit. Deposits at a separate bank are assessed separately. DICGC’s FAQ and DICGC depositor information
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Ownership capacity can affect the calculation: accounts held by one person in the same capacity are generally combined, while certain different capacities or joint-account arrangements may be treated separately under DICGC’s rules. Do not assume that merely changing the account name or opening another account creates separate coverage; ask the bank how DICGC would aggregate the specific holdings.
How NRE, NRO and FCNR(B) accounts differ
| Account | Basic form | Funding and scheme context |
|---|---|---|
| NRE | Non-Resident (External) account, denominated in rupees | RBI rules govern permitted funding and repatriation. |
| NRO | Non-Resident Ordinary account, denominated in rupees | For bona fide rupee transactions by a person resident outside India; permitted credits include inward remittances and legitimate dues in India, subject to the rules. |
| FCNR(B) | Foreign Currency (Non-Resident) Bank account; a term deposit in foreign currency | Permitted currencies and other scheme details are governed by RBI rules. |
These account descriptions come from the RBI’s account-scheme rules and Foreign Exchange Management (Deposit) Regulations. The scheme name or currency alone does not determine insurance eligibility: the source and form of funds, account status, insured status of the bank and scope of DICGC’s exclusions may all be relevant.
What DICGC says about non-resident deposits
DICGC’s general FAQ excludes “any amount due on account of any deposit received outside India.” That is the FAQ’s stated exclusion; it should not be rewritten as a blanket conclusion about every credit that might appear in every NRE or NRO account. For example, RBI rules allow certain legitimate dues in India to be credited to an NRO account. The account’s funding history and applicable rules matter. DICGC’s FAQ; RBI regulations
Separately, DICGC’s 2025 Master Directions list Non-Resident Rupee Accounts and balances held in FCNR accounts among excluded categories in materials concerning deposit-insurance premium returns. That is an official indication relevant to these account types, but its stated context is premium returns; it is not, by itself, a plain-language ruling on every depositor’s claim or every way an account may have been funded. DICGC 2025 Master Directions
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to check your account’s treatment
- Confirm the bank is insured. Check DICGC’s insured-bank information or ask the bank. DICGC’s general scheme applies to deposits in insured banks, subject to its rules and exclusions. DICGC
- Identify the account and its history. Note whether it is NRE, NRO or FCNR(B), its current status, and where the credited funds came from. For NRO balances, distinguish inward remittances from legitimate dues in India where relevant.
- Ask for a specific answer. Ask the bank whether that particular balance is eligible under DICGC’s rules, taking account of its funding and status. DICGC’s FAQ advises depositors with doubts to make a specific enquiry with branch officials.
- Calculate any eligible balance across the bank. Include principal and interest, and account for deposits at every branch held in the same right and capacity. A separate bank has a separate limit.
The DICGC information leaflet for 2024–25 also describes the general ₹5 lakh limit; it does not establish a separate NRE-, NRO- or FCNR(B)-specific coverage figure. DICGC 2024–25 information leaflet
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