Module: General Practice
Q66: What is the insurance premium rate paid to DICGC as of the financial year 2025-26, and who bears the burden of this cost?
✅ Correct Answer: B
The premium is 12 paise per 100 Rupees of assessable deposits per annum, and the cost is borne entirely by the insured bank.
The bank cannot pass this cost to the depositor.
Structural Breakdown: Current Rate: 12 paise per 100 Rupees (Effective since April 1, 2022). Statutory Cap: The DICGC Act allows the corporation to raise the premium up to a maximum of 15 paise per 100 Rupees, but this requires RBI approval.
Payment Cycle: Banks pay this premium in advance on a half-yearly basis.
The bank cannot pass this cost to the depositor.
Structural Breakdown: Current Rate: 12 paise per 100 Rupees (Effective since April 1, 2022). Statutory Cap: The DICGC Act allows the corporation to raise the premium up to a maximum of 15 paise per 100 Rupees, but this requires RBI approval.
Payment Cycle: Banks pay this premium in advance on a half-yearly basis.