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Fixed Deposit

Is a digital FD a safe investment option in India?


Digital fixed deposits are safe in India as they are issued directly by scheduled commercial banks and non-banking financial companies (NBFCs) regulated by the Reserve Bank of India (RBI).

Why it matters

The "digital" aspect only transforms the convenience of the application and documentation process, leaving the underlying security of your funds completely unaffected. Your digital deposit carries the exact same legal protection as a paper-based branch FD, including Deposit Insurance and Credit Guarantee Corporation (DICGC) coverage of up to ₹5 lakh per depositor, per bank. For placing corporate or personal surpluses exceeding this insured threshold, investors should prioritise highly rated banks or corporate issuers to safeguard their capital.
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