In a move aimed at benefitting crores of account holders, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has instructed all banks, including HDFC, SBI, and ICICI Bank, to implement a significant rule change.
By August 31, banks are required to prominently display the DICGC logo and QR code on their websites and internet banking portals.
This directive from DICGC, under the Reserve Bank of India’s guidance, is primarily intended to create awareness about the deposit insurance scheme, with HDFC, SBI, and ICICI Bank having the largest customer base in the country.
Promoting Awareness and Security
DICGC, which provides insurance for bank deposits up to Rs 5 lakh, aims to enhance awareness of the deposit insurance scheme through this measure.
The scheme covers deposits in commercial banks, local area banks, payment banks, small finance banks, regional rural banks, and co-operative banks.
Collaboration with the Central Bank
In consultation with the central bank, DICGC’s subsidiary company, a circular has been issued emphasizing the crucial role of deposit insurance in protecting small depositors, fostering confidence in the banking system, and maintaining financial stability.
The circular states, “This decision has been taken in consultation with the central bank to increase awareness about focused and continuous deposit insurance.”
Accordingly, all banks registered with DICGC must prominently display the DICGC logo and QR code linked to the DICGC website on their respective websites and internet banking portals.
Enhancing Customer Awareness and Information
The display of the DICGC logo and QR code will aid customers in identifying banks covered under the deposit insurance scheme and obtaining comprehensive information about deposit insurance.
All banks concerned have been instructed to ensure compliance with this directive starting from September 1, 2023. As of March 31, 2023, there were 2,027 insured banks registered with DICGC, including 140 commercial banks.
With this rule change, DICGC aims to foster customer awareness and ensure that customers of HDFC, SBI, ICICI Bank, and other banks are well-informed about the deposit insurance scheme.
By prominently displaying the DICGC logo and QR code, the initiative seeks to bolster trust in the banking system and provide greater financial security to depositors.
