All banks now pay the same premium of 12 paise for every ₹100 of assessable deposits, regardless of how risky or well-managed they are.
The deposit insurance and credit guarantee corporation (DICGC) has been providing deposit insurance since 1962 using a flat premium system.
DICGC has decided to move to a risk-based premium framework from April 1, 2026, with RBI nod.
Banks with stronger financial health and better governance will pay lower premiums, while riskier banks will pay more. Banks will be grouped into 4 risk categories-A, B, C and D. Category A banks, considered the safest, will pay 8 paise per ₹100 of deposits; Category D banks will continue to pay current rate of 12 paise. Risk assessment will be based on audited financial data and supervisory ratings.
