What is the primary function of deposit insurance in the context of fixed deposits?

To guarantee higher interest rates on fixed deposits To protect against losses in case of bank failures To provide tax benefits for fixed deposit investments To offer investment advice for fixed deposit holders

Which entity is responsible for providing deposit insurance for banks in India?

Securities and Exchange Board of India (SEBI) Insurance Regulatory and Development Authority of India (IRDAI) Reserve Bank of India (RBI) Deposit Insurance and Credit Guarantee Corporation (DICGC)

What is the maximum amount of coverage provided by deposit insurance for individual depositors in a single bank?

Rs. 1 lakh Rs. 2 lakhs Rs. 3 lakhs Rs. 5 lakhs

Which of the following types of bank accounts are typically covered under deposit insurance?

Only fixed deposits Only savings accounts Only current accounts Fixed deposits, savings accounts, current accounts, and recurring deposits

How does deposit insurance contribute to financial inclusion?

By providing loans to individuals with low credit scores By offering financial literacy programs to the public By encouraging people to save and invest in the stock market By instilling confidence in the banking system, making it accessible to a wider range of people