Banking Awareness for Upcoming Exams Set 10 (About DICGC)

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk and insurance exams. This set contains questions from the topic: DICGC

1. What does G stands for in DICGC?
   A) General
   B) Guarantee
   C) Guideline
   D) Generation
   
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   Option B
   Explanation: Deposit Insurance and Credit Guarantee Corporation (DICGC). In the event of a bank failure, DICGC protects bank deposits that are payable in India.
2. In which year DICGC was established?
   A) 1961
   B) 1969
   C) 1978
   D) 1982
   
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   Option C
   Explanation: It was established on 15 July 1978
3. DICGC was established under the Act DICGC ____
   A) 1960
   B) 1961
   C) 1977
   D) 1978
   
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   Option B
   Explanation: DICGC Act, 1961
4. Which two organisations were merged to form DICGC?
   A) DIG & DGCI
   B) DCI & CGCD
   C) DIC & DGDI
   D) DIC & CGCI
   
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   Option D
   Explanation: With a view to integrating the functions of deposit insurance and credit guarantee , Deposit Insurance Corporation (DIC) and Credit Guarantee Corporation of India Ltd. (CGCI) . were merged and the present Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence on July 15, 1978. Consequently, the title of Deposit Insurance Act, 1961 was changed to ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961 ‘.  
5. What is the maximum deposit amount insured by the DICGC?
   A) Rs 2,00,000
   B) Rs 1,00,000
   C) Rs 3,00,000
   D) No limit
   
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   Option B
   Explanation: Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest
6. Who acts as the Chairman of Board of Directors of DICGC?
   A) Governor of RBI
   B) Deputy Governor of RBI
   C) Appointed by Central Government
   D) Chairman of NABARD
   
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   Option B
   Explanation: The management of the Corporation vests with its Board of Directors, of which a Deputy Governor of the RBI is the Chairman . Presnt Chiarman is – Shri N.S.Vishwanathan (As updated on 25 February 2017)
7. What is the authorized capital of DICGC?
   A) Rs 100 crore
   B) Rs 50 crore
   C) Rs 150 crore
   D) Rs 500 crore
   
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   Option B
8. What is Reserve Bank of India(RBI)′s stake in DICGC?
   A) 80%
   B) 90%
   C) 99.40%
   D) 100%
   
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   Option D
   Explanation: The authorized capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI).
9. Identify the false statement.
   A) Regional Rural Banks are insured by DICGC.
   B) DICGC insures current deposits
   C) DICGC insures Deposits of Central Government
   D) All are true
   
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   Option C
   Explanation: DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits.
   (i) Deposits of foreign Governments;
   (ii) Deposits of Central/State Governments;
   (iii) Inter-bank deposits;
   (iv) Deposits of the State Land Development Banks with the State co-operative banks;
   (v) Any amount due on account of and deposit received outside India;
   (vi) Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.
10. Where is the Headquarter of DICGC located?
    A) New Delhi
    B) Mumbai
    C) Kolkata
    D) Lucknow
    
    View Answer

    Option B