5.2.5.2 Allocation of Deposit Insurance
As part of the RBI Run, the application allocates the deposit insurance to accounts based on the guidelines specified by the Deposit Insurance and Credit Guarantee Corporation (DICIGC) of India. The insurance limit captured against each deposit insurance scheme is allocated to the insurance eligible accounts under that scheme based on the ownership category and the unique depositor combination.
The insurance limit, that is the maximum deposit balance covered by an insurance scheme per customer, is captured against each insurance scheme – ownership category combination. Customers having account in multiple legal entities get a separate deposit insurance limit per legal entity. In case of DICGC insurance scheme, the limit amount needs to be provided in Stage Insurance Scheme Master Table at the granularity of insurance scheme. The insurance limit is allocated to accounts as per the procedure given below:
- The application identifies the unique depositor combination for each owner ship category and legal entity combination.
- All insurance eligible accounts with a particular unique depositor combination
are identified and arranged in the descending order of their outstanding
balances.
The insurance limit available, is allocated to account 1 to n – 1 as per the formula given below:
Where:
Insurance Limit Available: Limit available post allocation to previous accounts = Insurance Limit Availablex-1 – Insured Amount x-1
x: Number of accounts up to the current account to which insured amount is to be allocated.
n: Total number of accounts of a customer which are eligible for insurance coverage under a given ownership category.
- The remaining available insurance is allocated to the last account i.e. account n for which insurance was not allocated.
An illustration of this procedure is provided below considering an INR 1,00,000 insurance limit for each unique depositor combination under each ownership category for each legal entity. The inputs to this calculation, including account details and customer details are provided below, along with the unique depositor combination, as identified by OFS LRM as per DICGC guidelines.
Table 4-1 Account details
| Legal Entity | Account Number | Account Balance | Ownership Category | Primary Holder | Secondary Holder 1 | Secondary Holder 2 | Secondary Holder 3 | Unique Depositor Combination |
|---|---|---|---|---|---|---|---|---|
| Legal Entity 1 | 100001 | 49965 | Single | Customer A | 1 | |||
| Legal Entity 1 | 100002 | 36903 | Joint | Customer A | Customer B | Customer C | 1 | |
| Legal Entity 1 | 100003 | 33762 | Partnership | Customer ABC | 1 | |||
| Legal Entity 1 | 100004 | 40681 | Company | Customer XYZ | 1 | |||
| Legal Entity 1 | 100005 | 7355 | Company | Customer XYZ | 1 | |||
| Legal Entity 1 | 100006 | 44995 | Joint | Customer B | Customer A | Customer C | 2 | |
| Legal Entity 1 | 100007 | 35614 | Joint | Customer A | Customer B | Customer C | 1 | |
| Legal Entity 1 | 100008 | 7568 | Joint | Customer C | Customer B | Customer A | 5 | |
| Legal Entity 1 | 100009 | 37205 | Single | Customer A | 1 | |||
| Legal Entity 1 | 100010 | 7337 | Partnership | Customer ABC | 1 | |||
| Legal Entity 1 | 100011 | 45016 | Company | Customer YZX | 2 | |||
| Legal Entity 1 | 100012 | 6574 | Partnership | Customer BC | 2 | |||
| Legal Entity 1 | 100013 | 4759 | Company | Customer XYZ | 1 | |||
| Legal Entity 1 | 100014 | 20517 | Company | Customer ZXY | 3 | |||
| Legal Entity 1 | 100015 | 24254 | Joint | Customer B | Customer C | Customer A | 4 | |
| Legal Entity 1 | 100016 | 68691 | Joint | Customer B | Customer A | Customer C | Customer D | 3 |
| Legal Entity 1 | 100017 | 20565 | Joint | Customer C | Customer B | Customer A | 5 | |
| Legal Entity 2 | 200001 | 34042 | Single | Customer A | 1 | |||
| Legal Entity 2 | 200002 | 3100 | Joint | Customer A | Customer B | Customer C | 1 | |
| Legal Entity 2 | 200003 | 43096 | Single | Customer B | 2 | |||
| Legal Entity 2 | 200004 | 42522 | Joint | Customer A | Customer B | Customer C | 1 | |
| Legal Entity 2 | 200005 | 32457 | Joint | Customer A | Customer B | Customer C | 1 | |
| Legal Entity 2 | 200006 | 33075 | Joint | Customer A | Customer B | Customer C | 1 |
The application allocates the insurance limit of INR 1,00,000 to all eligible accounts held by each unique depositor combination as follows:
Table 4-2 Account details
| Legal Entity | Account Number | Account Balance (a) | Ownership Category | Unique Depositor Combination | Limit Applicable | Available Limit (b = bt-1 – ct-1) | Insured Amount [c = As per Step (3)] | Uninsured Amount (a – c) |
|---|---|---|---|---|---|---|---|---|
| Legal Entity 1 | 100004 | 40681 | Company | 1 | 100000 | 100000 | 40681 | 0 |
| Legal Entity 1 | 100005 | 7355 | Company | 59319 | 7355 | 0 | ||
| Legal Entity 1 | 100013 | 4759 | Company | 51964 | 4759 | 0 | ||
| Legal Entity 1 | 100011 | 45016 | Company | 2 | 100000 | 100000 | 45016 | 0 |
| Legal Entity 1 | 100014 | 20517 | Company | 3 | 100000 | 100000 | 20517 | 0 |
| Legal Entity 1 | 100002 | 36903 | Joint | 1 | 100000 | 100000 | 36903 | 0 |
| Legal Entity 1 | 100007 | 35614 | Joint | 63097 | 35614 | 0 | ||
| Legal Entity 1 | 100006 | 44995 | Joint | 2 | 100000 | 100000 | 44995 | 0 |
| Legal Entity 1 | 100016 | 68691 | Joint | 3 | 100000 | 100000 | 68691 | 0 |
| Legal Entity 1 | 100015 | 24254 | Joint | 4 | 100000 | 100000 | 24254 | 0 |
| Legal Entity 1 | 100017 | 20565 | Joint | 5 | 100000 | 100000 | 20565 | 0 |
| Legal Entity 1 | 100008 | 7568 | Joint | 79435 | 7568 | 0 | ||
| Legal Entity 1 | 100003 | 33762 | Partnership | 1 | 100000 | 100000 | 33762 | 0 |
| Legal Entity 1 | 100010 | 7337 | Partnership | 66238 | 7337 | 0 | ||
| Legal Entity 1 | 100012 | 6574 | Partnership | 2 | 100000 | 100000 | 6574 | 0 |
| Legal Entity 1 | 100001 | 49965 | Single | 1 | 100000 | 100000 | 49965 | 0 |
| Legal Entity 1 | 100009 | 37205 | Single | 50035 | 37205 | 0 | ||
| Legal Entity 2 | 200004 | 42522 | Joint | 1 | 100000 | 100000 | 42522 | 0 |
| Legal Entity 2 | 200006 | 33075 | Joint | 57478 | 33075 | 0 | ||
| Legal Entity 2 | 200005 | 32457 | Joint | 21303 | 21303 | 11154 | ||
| Legal Entity 2 | 200002 | 3100 | Joint | 24403 | 3100 | 0 | ||
| Legal Entity 2 | 200001 | 34042 | Single | 1 | 100000 | 100000 | 34042 | 0 |
| Legal Entity 2 | 200003 | 43096 | Single | 2 | 100000 | 100000 | 43096 | 0 |