SANGSAD BHABAN, June 11, 2023 (BSS) - Bank and Financial Institution Deposit Protection (Amendment) Act-2023 was placed in the Jatiya Sangsad with an aim to safeguard people's money deposited with all financial institutions, including banks and nonbanks, in case of their bankruptcy.
 
Finance Minister AHM Mustafa Kamal today placed the bill in the House with Speaker Dr Shirin Sharmin Chaudhury in the chair.
 
While placing the bill, the minister said the draft of 'Bank and Financial Institution Deposit Protection Act 2023' replaces the existing 'Bank Deposit Insurance Act 2000' that covers security of bank deposit only.
 
"As per provision of the draft law a client will get a maximum of Tk 0.2 million against the funds deposited with the Bangladesh Bank by the company or financial institute as security money if they wind up or become bankrupt," according to the draft bill.
 
As per the draft law, a depositor will get back Tk 0.2 million after the liquidation of a bank or NBFI (non-bank financial institution) instead of Tk 0.1 million only for bank depositors.
 
The existing insurance coverage of any bank deposit is only Tk 0.1 million. It means, no matter what the deposit amount is, a depositor will definitely get at least Tk 1.0 lakh in case of closure or liquidation of any bank while there is no insurance coverage for NBFI deposit.
 
The latest government move came to increase insurance coverage of single depositor of any bank as some confusion and debate were created regarding the protection of depositors' money.
 
The government has decided to amend the current Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act 2000). It will be replaced by the Deposit Protection Act 2023.
 
The minister urged the House to send the bill to the concerned parliamentary standing committee for providing reports within a month.