with paybox plus mandate has risen to 48 per cent ( a rise of 11 basis points in ten years ), especially among advanced economies. the shares of loss minimisers3 and risk minimisers4 have remained broadly unchanged. iv. coverage it may be apposite at this juncture to set out some stylised facts about deposit insurance coverage in india and how they compare with the global experience as recently profiled by the iadi5. in india, deposit insurance is mandatory for all banks, including foreign banks. currently, 1, 997 banks are covered, comprising 140 commercial banks and 1, 857 cooperative banks, which are small financial institutions owned and controlled by their members and are community - focused in their operations. according to the iadi's latest deposit insurance survey6, this is the largest number of deposit - taking institutions covered by deposit insurance in the world, second only to the us. the current insurance coverage limit is inr 500, 000 ( approximately us $ 6000 ) per depositor in a bank. expressed as a multiple of nominal gdp per capita, this works out to 2. 9 times as against the global median of 3. 3, but it compares favourably with medians for paybox and risk minimiser dis. on a by - account basis, the coverage ratio in india at 97. 9 per cent is in line with the global median and a little below the latter – 44. 2 per cent as against 47 per cent globally – in terms of value of deposits. v. funding 2 / 5 bis - central bankers'speeches funding for deposit insurance in india is in line with the global central tendency under which 96 per cent of dis are funded by levying premiums on member institutions ( 64 per cent of pre - tax accretion to the fund ). in addition, about 35 per cent of the accretion to the deposit insurance fund ( dif ) came from investment income in fiscal 2022 - 2023. unlike the growing practice worldwide of nearly half of deposit insurers levying differential premiums incorporating additional risk measures – up from 30 per cent in 2010 – a flat rate premium of 0. 12 per cent per annum is levied in india which has been revised from time to time, keeping in view the adequacy of the corporation's dif. the size of the fund, measured by its ratio to insured deposits, at 2. 02 per cent is comparable with the global

in india in a cross - country setting let me begin by providing a brief historical context for the establishment of the dicgc. the idea of deposit insurance was shaped by intermittent bank failures between 1948 and 1960. a deposit insurance act was promulgated by parliament in 1961 to set up the deposit insurance corporation ( dic ), a wholly owned subsidiary of the reserve bank of india ( rbi ), the country's central bank. it was merged with the credit guarantee corporation of india and renamed as the deposit insurance and credit guarantee corporation ( dicgc ) on july 15, 1978 with the mandate of " insurance of 1 / 5 bis - central bankers'speeches deposits and guaranteeing of credit facilities and for other matters connected therewith or incidental thereto ". iii. mandate from its very inception, therefore, the corporation was envisaged as a paybox plus1 institution. the credit guarantee function was discontinued in april 2003 and deposit insurance became and remains the principal function of the corporation. the resolution function resides with the rbi as the regulator of the financial sector. currently, the paybox plus mandate is restricted to the provision of financial support in case of the mergers. more recently, however, this mandate has been strengthened with amendments to the dicgc act in august 2021 which provides for up - front payouts within stipulated timelines. this provision is unique among deposit insurers. the corporation is now liable to make payment to depositors of a bank facing solvency stress up to the deposit insurance limit within 90 days of the bank being placed under regulatory directions that restrict it from discharging its liabilities, i. e., even before liquidation and amalgamation. the insured bank has to submit the depositors list within 45 days. the corporation has to get the genuineness and authenticity of the claims verified within 30 days and pay the depositors who have submitted their willingness to receive the same within the next 15 days. in case the rbi finds it expedient to bring a scheme of amalgamation / compromise or arrangement / reconstruction, the liability of the corporation will get extended by a further period of 90 days. globally too, the mandates of dis have expanded significantly, with the share of paybox 2 entities shrinking. by 2023, it was down to 17 per cent. increasingly, dis have been vested with additional responsibilities, including for financing and resolution, in recognition of their crucial role as participants in the national financial safety net. consequently, the share of dis