After bloating in FY22, the claims settled by Deposit Insurance and Credit Guarantee Corporation (DICGC) fell to Rs 751.8 crore during FY23.

In FY22, the aggregate claims settled by DICGC stood at a whopping Rs 8,516.6 crore. This was largely led by Unity Small Finance Bank (USFB), which was given Rs 3,791.6 crore to pay the depositors of the erstwhile Punjab and Maharashtra Co-operative  (PMC) Bank.

The urban cooperative bank had merged with UFSB with effect from 25 January 2022.

According to the Financial Stability Report, released on Wednesday, with the present deposit insurance limit of Rs 5 lakh, 98.1% of the deposit accounts (estimated three billion) and 46.3% of the assessable deposits (Rs 181.14 trillion) were insured.

In absolute terms, the insured deposits amounted to Rs 83.89 trillion as of March 31, 2023.

The deposit insurance premium received by DICGC grew 9.7% year-on-year to Rs 21,381 crore during 2022-23. Of this, the share of the commercial banks was 94%.

The Deposit Insurance Fund with DICGC rose 15.5% year-on-year during 2022-23 to reach Rs 1.70 trillion on 31 March 2023. 

The fund is built primarily from the premiums paid by banks, recoveries from settled claims and investment incomes, and net of income tax.