Q.Fill in the blank and justify: The deposits of members held by an urban co-operative bank are insured up to the prescribed limit by the __________.

Depositors in a licensed co-operative bank enjoy a safety-net that protects their money up to a limit.

The correct answer for the blank is the Deposit Insurance and Credit Guarantee Corporation (DICGC).

The DICGC is a subsidiary of the Reserve Bank of India that insures bank deposits in India. When an urban co-operative bank is licensed by the RBI, the deposits of its customers are insured up to the prescribed limit per depositor. This means that if such a bank fails, each depositor is repaid up to that limit by the DICGC. …

Students sometimes write 'the RBI' or 'the government'. Although the DICGC is a subsidiary of the RBI, deposit insurance is specifically pro …