Concept:DICGC insures regular retail bank deposits, while government, inter-bank, and call money deposits are excluded from coverage.
Explanation:The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of the RBI, established on July 15, 1978, under the DICGC Act, 1961.
It insures Savings, Fixed, Current, and Recurring Deposits held in all commercial banks and cooperative banks.
Each depositor is covered up to
Rs. 5,00,000 for principal and interest together, as per the revised limit effective from February 4, 2020.
Recurring Deposits are covered because they are ordinary retail deposits that face the risk of bank failure, just like other insured deposits.
The insurance premium is paid by the insured banks, and depositors do not pay any premium for this protection.
However, the following are excluded from DICGC coverage: inter-bank deposits, deposits of foreign governments, deposits of Central or State governments, and money at call.
Therefore, among the given options, only Recurring Deposits qualify for DICGC insurance.
Answer:Recurring Deposits (Option C).