The genesis of deposit insurance in India can be traced back to the enactment of Deposit Insurance (DI) Act, 1961, which came into force on January 1, 1962, establishing Deposit Insurance Corporation (DIC). The Reserve Bank of India also promoted a public limited company in 1971, named the Credit Guarantee Corporation of India Ltd. (CGCI) to operationalise the Credit Guarantee Scheme of the Government of India, which provided guarantee cover to the loans and advances granted by the credit institutions to small and needy borrowers covered under the priority sector. With a view to integrating the functions of DI and credit guarantee, the above two organizations (DIC & CGCI) were merged and the present Deposit Insurance and Credit Guarantee Corporation (DICGC) came into existence in 1978. DICGC is second oldest DI agency after the FDIC. As no credit institution was participating in any of the credit guarantee scheme administered by DICGC, the scheme was discontinued in 2003 and currently DI remains the principal function of the Corporation.