What does FRDI mean in GENERAL

FRDI is a system of financial insurance created by the Indian government to protect financial institutions and depositors from any kind of loss. It provides protection against any kind of liabilities arising due to mismanagement, fraud or any other factors which leads to bankruptcy or closure of a financial institution.

FRDI is regulated by the Reserve Bank of India (RBI) and administered by the Deposit Insurance and Credit Guarantee Corporation (DICGC).

Financial deposits such as savings, current, fixed/time deposits with banks, co-operative societies, credit unions etc. are all covered under FRDI.

Yes, each bank account is insured up to 1 lakh rupees by default under FRDI. There is no upper limit for compensations received from multiple accounts in different banks held by same person or group.

No, depositors do not have to pay any premium against their account being insured under FRDI. The premium charged is only borne by the respective financial institution.

Yes, apart from protection against insolvency risk due to mismanagement or fraud, the insurance also covers losses arising out of cyber threats such as online banking frauds and phishing scams etc.

Yes, all banks mandatorily provide notification about your deposit coverage when you open a new account. However you can ask for it at anytime if unsure about it.

Generally no but depending on the type and nature of deposits made certain conditions may apply such as minimum balance etc. You should consult with your bank regarding their specific conditions beforehand.