As per the deposit insurance and credit guarantee corporation established by the government commercial banks and cooperative banks are both insured however primary cooperatives societies are not insured by this arrangement.
Commercial Banks: All commercial banks including:
- branches of foreign banks functioning in India,
- local area banks and
- regional rural banks are insured.
- All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories*
- At present all co-operative banks are covered by the DICGC.
*which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme
This information is as provided by the RBI