This means that the benefit of deposit insurance protection is made available to the depositors or customers of banks free of cost.
The Corporation has the power to cancel the registration of an insured bank if it fails to pay the premium for three consecutive half-year periods.
The present DICGC will be subsumed into the Resolution Corporation (RC) which will work across the financial system.
It will concern itself with all financial firms which make highly intense promises to consumers, such as banks, insurance companies, defined benefit pension funds, and payment systems.
It will also take responsibility for the graceful resolution of systemically important financial firms, even if they have no direct links to consumers.