DICGC Introduces Daava Soochak for Depositors to Track Claim Status

The Deposit Insurance and Credit Guarantee Corporation (DICGC), since its inception, has provided depositors with insurance coverage for their bank deposits. Following fraud charges against the Mumbai-based New India Cooperative Bank, DICGC will compensate depositors with deposit insurance payouts of up to ₹5 lakh each. The corporation has launched the Daava Soochak, which allows depositors to track claims related to their insurance coverage on term deposits. 

Read on to discover how the Daava Soochak portal can assist you. However, before we dive into further details, let us first understand what DICGC is and how it works.

What Is DICGC?

The Reserve Bank of India (RBI) regulates DICGC, which provides insurance protection to depositors in the event of a bank failure. The insurance by DICGC covers current, savings, recurring and fixed deposits. The limit of DICGC's insurance coverage is up to ₹5 lakh.

After consistent cases of bank failure, the Deposit Insurance Corporation (DIC) Bill was introduced in 1961. Later in 1978, DIC and CGCI (Credit Guarantee Corporation of India) merged to form the DICGC (Deposit Insurance and Credit Guarantee Corporation). Its sole goal is to provide financial assurance to depositors and promote public confidence in the Indian banking system. 

What Is the Daava Soochak?

The Daava Soochak was launched by DICGC in mid-August 2024. The main function of Daava Soochak is to help depositors with tracking their deposit claims. This online facility allows users to monitor their claims by simply entering their mobile number on the official DICGC website. 

How to Track the Claim Status with Daava Soochak?

Here is a stepwise process that a depositor needs to follow to access Daava Soochak by DICGC:

Step 1: Visit the official site of DICGC.

Step 2: Navigate to the 'Daava Soochak – Claim Status Tracker' option and click on it.

Step 3: Select your bank from the dropdown list, enter your mobile number and generate an OTP.

Step 4: After you fill in the OTP, you can view the status of your DICGC insurance claim.

How Does DICGC Settle Claims?

If a bank undergoes liquidation, the liquidator prepares a depositor-wise claim list and submits it to DICGC for assessment. After successful verification, DICGC processes the payment, which is disbursed to the liquidator rather than directly to depositors. In cases of a bank merger, the insured amount is transferred to the transferee bank instead.

As per the DICGC (Amendment) Act, 2021, they pay back the depositors of various insured banks within a period of 90 days. The bank files the claim consisting of depositors’ names within 45 days. Within the next 45 days, DICGC verifies and then settles the claim.

DICGC Claim Settlement for Financial Year 2025-26

The Deposit Insurance and Credit Guarantee Corporation settled claims worth ₹1,432 crore for the financial year 2023-2024. This entire amount was allocated to co-operative banks that were placed under liquidation or all-inclusive directions (AID). 

What Is the Maximum DICGC Insurance Coverage Limit?

The current DICGC insurance coverage limit is ₹5 lakh. Every depositor is eligible for this insurance coverage and it applies to their principal sum and interest as a whole. Deposits held under the same ownership type within a single bank are added together to determine the insured amount. However, if the ownership type differs or funds are placed in different banks, each deposit is insured separately.

The Centre has proposed an increase in deposit insurance coverage by DICGC from ₹5 lakh to a range of ₹8 lakh to ₹12 lakh. While this change has not been implemented yet, it is expected to take effect in the first quarter of 2025.

Final Word

The DICGC has always ensured depositors feel secure when investing in term deposits. With the Daava Soochak tool, tracking deposit insurance claims is now easier.

Did you know that Stable Money offers DICGC-backed FD bookings? This means your fixed deposits are insured up to ₹5 lakh. In addition, you can earn up to 9.10% interest on FDs booked through our platform.

So why wait? Download the Stable Money app today!

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