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DICGC’s general insurance limit is up to ₹5 lakh per depositor at an insured bank, including principal and interest, but official public guidance does not clearly confirm whether an individual FCNR(B) deposit qualifies for that protection. DICGC excludes deposits received outside India, while its bank-level premium calculations include FCNR balances; that accounting treatment does not establish an FCNR(B) depositor’s claim entitlement. If you hold one, check the bank’s insured status and seek written, account-specific guidance about eligibility and currency conversion.
What DICGC insurance generally covers
The Deposit Insurance and Credit Guarantee Corporation (DICGC) says eligible deposits at an insured bank are covered up to ₹5 lakh per depositor, including principal and interest. The limit applies to the total of a depositor’s accounts held in the same right and capacity at that bank, across its branches. Deposits at separate insured banks have separate limits. See DICGC’s Guide to Deposit Insurance.
This is a ceiling for eligible deposits, not a guarantee that every balance—or every type of account—will receive ₹5 lakh. DICGC also says deposits received outside India are excluded. The published guidance does not expressly explain how that exclusion applies to an individual FCNR(B) claim.
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Why FCNR(B) coverage is not settled by the public guidance
FCNR(B) is a foreign-currency term deposit governed by RBI rules for eligible non-residents. RBI describes the account and its regulatory basis in the Foreign Exchange Management (Deposit) Regulations, 2016 and the Foreign Currency (Non-Resident) Accounts (Banks) Scheme, 1993. The scheme permits repatriation of funds in foreign currency.
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DICGC’s guide states the exclusion for deposits received outside India. Separately, its Explanatory Notes list balances held in FCNR accounts in the bank-level deposit figures used to calculate assessable deposits for premium purposes. That is an accounting classification for the bank’s reported deposit base; it does not expressly confirm an individual account holder’s claim eligibility or how a foreign-currency balance would be converted against the ₹5 lakh limit.
Accordingly, neither “all FCNR(B) deposits are insured” nor “no FCNR(B) deposit can be insured” is established by these statements alone. The answer may depend on the particular deposit and how DICGC treats its receipt route.
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Questions to get answered in writing
- Would this specific FCNR(B) deposit qualify for a DICGC claim if the bank were liquidated or placed under withdrawal restrictions?
- Does the original remittance route mean these funds are treated as a “deposit received outside India” for the exclusion?
- If the deposit qualifies, what exchange-rate date and method would DICGC use to apply the ₹5 lakh ceiling to its foreign-currency balance?
- Which accounts held in the same right and capacity, and which loans or dues, would be combined or set off?
How the ₹5 lakh limit is calculated
For deposits that qualify, DICGC aggregates balances held by the same depositor in the same right and capacity at the same bank, including accounts at different branches. Opening accounts at multiple branches therefore does not multiply the limit. DICGC calculates the claim using deposit and loan information as of the relevant cut-off, clubs deposits in the same capacity and right, and sets off dues owed by the depositor. See DICGC’s FAQ.
For an FCNR(B) holder, the calculation also raises the unresolved question of how the foreign-currency balance is converted to rupees for the cap. DICGC’s public material cited here does not state the applicable exchange-rate date or method.
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The process depends on what happens to the bank. Liquidation and RBI-imposed All-Inclusive Directions (AID) with withdrawal restrictions have different procedures. DICGC’s stated timelines are tied to the required claim list or depositor data; they are not a guarantee that every depositor will receive money by a fixed date.
| Situation | What DICGC says | What the depositor should do |
|---|---|---|
| Liquidation | The liquidator prepares a depositor-wise claim list and submits the claim. DICGC says payment to the liquidator is due within two months after it receives the claim list. | Keep account and identity records available. The liquidator makes the insurance claim on depositors’ behalf. |
| Insured bank under AID with withdrawal restrictions | DICGC describes a 90-day settlement framework, subject to the bank submitting depositor data within 45 days. | Approach the bank’s CEO or administrator, submit the willingness form, and provide identity documents. |
For the AID process, follow the bank’s instructions and DICGC’s guide. DICGC’s Information Booklet explains that, in liquidation, the liquidator handles the claim on depositors’ behalf.
Quick Recap
What to check now
- Look up the institution in DICGC’s List of Insured Banks. The list page was marked updated September 22, 2026 when accessed; confirm its current status rather than relying on an old copy.
- Ask the bank and DICGC for written, account-specific answers to the FCNR(B) questions above, especially how the remittance route and currency conversion would be treated.
- Keep deposit statements, remittance records, account ownership details, and identity documents. These can help establish how the deposit was funded and who holds it.
- If withdrawal restrictions are imposed, follow the bank’s official AID instructions. If the bank is in liquidation, monitor communications from the appointed liquidator.
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