Deposit Insurance and Credit Guarantee Corporation (DICGC) - May 30th, 2007

Get your bank deposits insured & stay assured

Bank failures are rare, but not unknown. But what happens to the depositors money if by any sheer misfortune a bank does go under? The comforting part is that deposits are insured. An organisation by the name Deposit Insurance and Credit Guarantee Corporation (DICGC) administers this insurance scheme. However, better knowledge of the way the Deposit Insurance Scheme operates can help you salvage the maximum amount out of a bad situation if and when it arises. Here are a few things that could be kept in mind. About the scheme

As of now, all commercial banks, branches of foreign banks, regional rural banks and cooperative banks are covered by the DICGC. Primary co-operative societies are, however, not covered. The coverage is expansive as most banks we normally deal with in our day-to-day life are covered. Bank deposits savings, fixed, current, recurring, etc, are all covered. However, the DICGC only covers deposits payable in India. The deposit insurance premium is borne by the bank. It is important to note though that registration of an insured bank with the DICGC can be cancelled if the bank fails to pay the premium for three consecutive half periods. In such a case, if the DICGC withdraws the cover, it notifies the public through newspapers.

What to keep in mind Watch out for the ceiling the most important thing is that the deposits of each depositor are insured up to a maximum amount of Rs 1 lakh. This limit includes both the principal and accrued interest. But, if they together add up to more than the specified amount, a maximum of Rs 1 lakh will be paid. The limit of Rs 1 lakh may seem small, but, it may not be wise to have that much money for an extended period in a savings account considering the low return.One can have more than Rs 1 lakh in multiple FDs, especially considering attractive rates offered these days. So, how you structure your FDs and spread them between different banks may be important. Same bank, different accounts doesnt help the scheme details clearly point out that deposits kept by one person in different branches of one bank are aggregated and only a cumulative amount of Rs 1 lakh is payable. So, it might not help if you have more than Rs 1 lakh in your own individual name in different branches.

This also means that your savings account and all your FD accounts in one bank are aggregated as they are, in bank jargon, held in same right and capacity. But, if you hold an individual account and a joint account in the same bank, they are considered to be in different right and capacity and are separately covered. Spread over different banks - Thus, with what has been mentioned above, if you are going to have more than Rs 1 lakh cumulatively in your name, it may be better to spread it over different banks. Deposit insurance coverage applies separately to deposits in each bank.

ISO 9362 (also known as SWIFT-BIC, BIC code, SWIFT ID or SWIFT code) is a standard format of Business Identifier Codes approved by the International Organization for Standardization (ISO). It is a unique identification code for both financial and non-financial institutions.[1] (When assigned to a non-financial institution, a code may also be known as a Business Entity Identifier or BEI). These codes are used when transferring money between banks, particularly for international wire transfers, and also for the exchange of other messages between banks. The codes can sometimes be found on account statements. The overlapping issue between ISO 9362 and ISO 13616 is discussed in the article International Bank Account Number (also called IBAN). The latest edition is ISO 9362:2009 (dated 2009-10-01). The SWIFT code is 8 or 11 characters, made up of:

4 letters: Institution Code or bank code. 2 letters: ISO 3166-1 alpha-2 country code 2 letters or digits: location code o if the second character is "0", then it is typically a test BIC as opposed to a BIC used on the live network. o if the second character is "1", then it denotes a passive participant in the SWIFT network o if the second character is "2", then it typically indicates a reverse billing BIC, where the recipient pays for the message as opposed to the more usual mode whereby the sender pays for the message. 3 letters or digits: branch code, optional ('XXX' for primary office)

Where an 8-digit code is given, it may be assumed that it refers to the primary office. SWIFT Standards, a division of The Society for Worldwide Interbank Financial Telecommunication (SWIFT), handles the registration of these codes. Because SWIFT originally introduced what was later standardized as Business Identifier Codes (BICs), they are still often called SWIFT addresses or codes. The 2009 update of ISO 9362 broadened the scope to include non-financial institutions, before then BIC was commonly understood to be an acronym for Bank Identifier Code. There are over 7,500 "live" codes (for partners actively connected to the BIC network) and an estimated 10,000 additional BIC codes which can be used for manual transactions.

Contents
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1 Examples 2 12-character SWIFTNet FIN address based on BIC

3 See also 4 External links 5 References

[edit] Examples
Deutsche Bank is an international bank, with its head office in Frankfurt, Germany. The SWIFT code for its primary office is DEUTDEFF:

DEUT identifies Deutsche Bank DE is the country code for Germany FF is the code for Frankfurt

Deutsche Bank uses an extended code of 11 digits and has assigned branches or processing areas individual extended codes. This allows the payment to be directed to a specific office. For example, DEUTDEFF500 would direct the payment to an office of Deutsche Bank in Bad Homburg. Nedbank is a primarily South African bank, with its head office in Johannesburg. The SWIFT code for its primary office is NEDSZAJJ:

NEDS identifies Nedbank ZA is the country code for South Africa JJ is the code for Johannesburg

Nedbank has not implemented the extended code of 11 digits and all SWIFT transfers to its accounts are directed to the primary office for processing. Those transfer interfaces that require an 11 digit code would enter NEDSZAJJXXX. Danske Bank is a primarily Danish bank, with its head office in Copenhagen. The SWIFT code for its primary office is DABADKKK:

DABA identifies Danske Bank DK is the country code for Denmark KK is the code for Copenhagen.

Unicredit Banca is a primarily Italian bank with its head office in Rome. The SWIFT code for the branch in Venice is e.g. UNCRIT2B912

UNCR identifies Unicredit Banca IT is the country code for Italy 2B912 is the code for Venice.

Dah Sing Bank is a bank based in Hong Kong that has five branches in mainland China (primary mainland China branch in Shenzhen). The SWIFT code for the branch in Shanghai is DSBACNBXSHA.

DSBA identifies Dah Sing Bank CN is the country code for China BXSHA is the code for Shanghai.

It uses the 11-digit extended code, and SHA identifies the Shanghai branch. Note that one bank can seem to have more than one bank identifier in a given country for separation purposes. Bank of East Asia separates its representative branch in the US and its USbased operations for local customers into BEASUS33xxx (following the code used in its home country) and BEAKUS33xxx respectively. This differs from its local mainland China operations which are also BEASCNxxxxx following Hong Kong rather than having a separate identifier code. SEPA payments require both BIC and IBAN. Both must be correct or payment will be rejected.

[edit] 12-character SWIFTNet FIN address based on BIC

To identify endpoints on its network, SWIFT also uses 12-character codes that are derived from the BIC of the institution. Such a code consists of the BIC8, followed by 1-character code that identifies the Logical Terminal (LTC), or "local destination", and the 3-character branch code. These 'BIC12's are not part of the ISO standard, and are only relevant in the context of the messaging platform.