Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 8 terms
Statutory cover protecting bank deposits up to a prescribed limit, written per depositor per bank rather than per account.
Bank FDs have it; corporate FDs, NCDs, credit societies and NBFC deposits have nothing equivalent, and that gap is most of the yield difference. Six accounts at one bank share one limit — the unit that multiplies the cover is the bank.
The Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the Reserve Bank that insures deposits at covered banks.
Cover is automatic, the bank pays the premium and you cannot opt out. It pays up to the prescribed limit per depositor per bank, net of anything you owe that bank.
The test that decides which of your deposits at one bank are added together for deposit insurance.
Money held as an individual, as guardian of a minor, as a partner of a firm or as a trustee sits in different capacities, and each gets its own limit. Four accounts in the same capacity are one pool with one limit.
A bank owned by its members and registered under co-operative law, supervised by the banking regulator alongside a co-operative registrar.
Deposit insurance is identical to any other bank. The resolution timetable historically is not — withdrawal caps at failed co-operative banks have lasted years rather than weeks.
A fixed deposit with a company rather than a bank.
One to two percent more, and no deposit insurance. The extra is the price of credit risk.
A mutual-benefit company under corporate law that may lend to, and take deposits from, its own members only.
Members-only is not a formality — it is exactly what keeps the entity outside banking supervision. No banking licence, no prudential inspection, no deposit insurance.
A bank included in the second schedule to the Reserve Bank of India Act, which gives it access to the central bank’s facilities and the clearing system.
What actually brings the prudential inspection and the deposit insurance is the banking licence, not the schedule. Small finance banks, payments banks and registered co-operative banks hold that licence; societies and nidhis do not, whatever the passbook looks like.
A licensed bank required to lend largely to small borrowers and underbanked segments, supervised as a bank.
It is a bank, so the deposit insurance is identical up to the same limit. It pays more because it lacks a large cheap deposit base and lends to a riskier segment — not because the statutory cover is different.