DICGC stands for Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the RBI that insures bank deposits in India. If your bank were to fail or be unable to repay depositors, DICGC insurance guarantees you'd get back up to ₹5 lakh, combining all your deposits (savings account, FD, RD, and current account) held with that particular bank.
It's worth noting the limit is per depositor, per bank — not per account — so if you hold a savings account and multiple FDs worth ₹10 lakh combined at one bank, only ₹5 lakh is protected, not the full amount. This is exactly why financial planners often recommend spreading large deposits across multiple different banks, rather than concentrating everything at one bank, purely to maximise the effective DICGC protection on your money.