Which organization deals with the insurance of deposits in banks?

The organization that deals with the insurance of deposits in banks is the Deposit Insurance and Credit Guarantee Corporation (DICGC). Established under the Deposit Insurance and Credit Guarantee Corporation Act of 1961, the DICGC provides deposit insurance to depositors in Indian banks. This insurance covers both savings and term deposits, ensuring that depositors are protected up to a certain amount (currently ₹5 lakh) in the event of a bank failure or liquidation.

This function is vital for maintaining public confidence in the banking system. By assuring depositors that their money has a safety net, the DICGC promotes stability in the financial system and encourages individuals to deposit their savings in banks rather than hoarding cash or seeking alternative, less secure options.

While the other choices pertain to financial regulatory frameworks, they do not address deposit insurance specifically. The Insolvency and Bankruptcy Board of India focuses on the regulation of insolvency proceedings and matters relating to bankruptcy. The National Company Law Tribunal (NCLT) primarily deals with company law issues and disputes. The National Payments Corporation of India (NPCI) is involved in the development and management of payment systems in India, facilitating digital transactions. None of these organizations function as a deposit insurance provider as DICGC does.