BANKING AFFAIRS

Detailed explanation-1: -The Reserve Bank of India also promoted a public limited company on January 14, 1971, named the Credit Guarantee Corporation of India Ltd. (CGCI).

Detailed explanation-2: -1971 witnessed the establishment of another institution, the Credit Guarantee Corporation of India Ltd. (CGCI).

Detailed explanation-3: -The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961 and received the assent of the President on December 7, 1961. The Deposit Insurance Corporation commenced functioning on January 1, 1962 .

Detailed explanation-4: -The preamble of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 states that it is an Act to provide for the establishment of a Corporation for the purpose of insurance of deposits and guaranteeing of credit facilities and for other matters connected therewith or incidental thereto.

Detailed explanation-5: -It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors. The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits up to a limit of Rs. 5 lakh per account holder per bank.