RBI appoints Suman Ray as executive director

• The Reserve Bank of India (RBI) appointed Suman Ray as executive director on September 1.

• He will look after the Department of Deposit Insurance and Credit Guarantee Corporation (DICGC) and the Premises Department. 

• Prior to being promoted as executive director (ED), Ray was serving as regional director for Maharashtra.

• As a career central banker, he has experience of over three decades in the RBI, having worked in several areas, including currency management, financial inclusion, payment and settlement system, consumer education and protection, and human resources. 

• Ray has also served as Secretary to the Western Area Local Board.

• The RBI does not have a fixed permanent total count for executive directors.

Deposit Insurance and Credit Guarantee Corporation (DICGC)

• The Deposit Insurance and Credit Guarantee Corporation (DICGC) was established on January 1, 1962 in accordance with the provisions of The Deposit Insurance and Credit Guarantee Corporation Act, 1961.

• The DICGC is a wholly owned subsidiary of the RBI. 

• The authorised capital of the Corporation, entirely subscribed to by RBI, is Rs 50 crore.

• The head office of DICGC is in Mumbai.

• The DICGC insures each bank depositor up to a maximum of Rs 5 lakh for both principal and interest as on the date of liquidation or cancellation of a bank’s licence.

• DICGC insures all bank deposits, such as savings of fixed or current deposits or recurring deposits, and it covers all commercial banks, including foreign bank branches in India.

• The enhanced deposit insurance cover of Rs 5 lakh is effective from February 4, 2020. The increase was done after a gap of 27 years as it has been static since 1993. 

• Every bank used to pay 10 paise as an insurance premium per Rs 100 of deposit. This was raised to 12 paise. 

• All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership, or are deposited into separate banks they would then be separately insured.