Copy The proposed model will differentiate banks by financial soundness, allowing stronger banks to save on premiums | Photo Credit: iStockphoto The RBI plans to introduce a risk-based deposit insurance premium model from the next financial year, helping banks that are more sound to save significantly on the premiums paid. The Deposit Insurance and Credit Guarantee Corporation (DICGC), under the DICGC Act, 1961, has been operating the deposit insurance scheme since 1962 on a flat-rate premium basis. Currently, banks are charged a premium of 12 paise per ₹100 of assessable deposits. “While the existing (deposit insurance) system is simple to understand and administer, it does not differentiate between banks based on their soundness. “It is, therefore, proposed to introduce a Risk Based Premium model which will help banks that are more sound to save significantly on the premium paid. Detailed notification will be issued shortly, which will be effective from the next financial year,” Governor Sanjay Malhotra said. Coverage limit unchanged The current coverage limit of deposit insurance is ₹5 lakh per depositor of a bank for deposit accounts held ‘in the same capacity and in the same right’. Deposits data update As of March-end 2025, the number of fully insured deposit accounts under the coverage limit was 293.7 crore (289.7 crore a year ago), with the assessable deposits and insured deposits standing at Rs 2,40,95,727 crore (Rs 2,18,52,160 crore) and Rs 1,00,04,919 crore (Rs 94,12,705 crore), respectively, per DICGC data. As of March-end 2025, fully protected accounts stood at 97.6% (97.8%) of the total number of accounts. The proportion of protected deposits in the total assessable deposits declined to 41.5% from 43.1%.