Banking Khabar/ Deposit and Credit Protection Fund has guaranteed deposit protection of more than 1.4 trillion 30 billion rupees in the bank accounts of common people for deposit protection.
According to Nepal Rastra Bank, by the end of Ashadh of the last financial year 2080/81, the fund had secured 1.4 trillion 30 billion 460 million rupees of savings, current, call and fixed deposits in 56 banks and financial institutions.
Deposits of bank savings accounts in the name of natural persons in total 45.7 million 95 thousand accounts are protected in the fund. According to National Bank, by the end of the previous financial year 2079/80, the fund had guaranteed a total of 1.2 trillion 32 billion rupees of deposit protection. At that time, the savings of accounts in the name of natural persons were protected in 41 million 381 thousand accounts.
The fund has been guaranteeing deposits up to a maximum of 500 thousand rupees per person in case of natural persons. That is, the deposit amount in the name of a person in any commercial bank, development bank, finance or microfinance institution is guaranteed to get the deposit back up to a maximum of 500 thousand rupees.
Under this provision, in case of financial distress of any bank or financial institution, the fund will refund the deposit of each depositor up to a maximum of 500 thousand rupees.
Nepal Rastra Bank has mandated deposit insurance up to a maximum of 500 thousand rupees for the savings accounts of natural persons of commerce, development, finance and microfinance companies. After any person opens a deposit account in a bank or financial institution and deposits money, the bank will arrange for its protection from the fund according to the predetermined limit.
According to Rastra Bank, by the end of 2080/81, the fund had secured 296 billion 450 million rupees worth of micro and poor class loans, small and medium industry loans and agricultural loans (including subsidized loans from government interest subsidies) of banks and financial institutions. By the end of the previous year 2079/80, a total of 274 billion 550 million rupees worth of loans were secured.
