A deposit made by an investor in India in which among the following is insured under Deposit Insurance?

  1. Commercial Banks
  2. Cooperative Banks
  3. Primary Agriculture Cooperative Societies (PACS)

Select the correct option from the codes given below:

Answer: [A] Only 1 & 2

All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC. All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories are covered under the Deposit Insurance System. Primary agriculture cooperative societies (PACS), which are village level cooperatives and disburse short term credits in the country are NOT insured by the DICGC.

This question is a part of GKToday's Integrated IAS General Studies Module