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SANGSAD BHABAN, April 10, 2026 (BSS) - The 'Deposit Protection Bill, 2026' was passed in the Jatiya Sangsad today to safeguard the interests of all depositors, strengthening financial discipline and thus ensuring long-term trust and stability in the country's financial sector. 

The proposed law seeks to repeal and replace the existing 'Bank Deposit Insurance Act, 2000' to make it more robust and effective. 

Finance Minister Amir Khosru Mahmud Chowdhury moved the Bill, which was passed by voice vote. 

Among the salient features of the Bill, it has been proposed to double the deposit insurance coverage, increasing it from the current Tk 100,000 to Tk 200,000 per depositor.

According to the objective of the Bill, the legislation is designed to enhance public confidence in the financial system by providing a secure legal framework for deposits held by both bank companies and finance companies. 

Under the Bill, all scheduled banks and finance companies operating in Bangladesh must become member institutions.

The Bill mandates the creation of two separate funds at Bangladesh Bank: The Deposit Protection Fund (Bank Companies) and the Deposit Protection Fund (Finance Companies). 
These funds will remain independent of each other and separate from the central bank's other liabilities. The Board of Directors of Bangladesh Bank will serve as the Trustee Board for these funds.

In a significant expansion of scope, finance companies are being brought under this protection framework for the first time. 

The Bill stipulates that all existing and newly licensed finance companies must become members by July 1, 2028.

Regarding the protection limit, the law states that in the event of a member institution's liquidation, each depositor will be guaranteed a maximum payment Taka of 2,00,000 from the fund. 

This limit will be reviewed and potentially recalculated by the government every three years. If a depositor has funds exceeding this limit, they can still file a claim for the remaining balance with the liquidator of the closed institution. 

The funds will be built primarily through premiums paid by member institutions. Banks and finance companies will be required to pay regular premiums every three months based on their average deposits. 

The Bill also empowers the Trustee Board to impose fines or restrict deposit-taking activities if an institution fails to pay its premiums on time.

The claim settlement process has been streamlined to ensure quick payouts. Once a liquidation order is issued, the liquidator must submit the list of depositors to Bangladesh Bank within 10 working days.
 
The central bank is then required to settle the protected deposit amounts within the next 7 working days.

Income and profits earned by the Deposit Protection Funds will be exempted from direct taxes to support their growth.