On February 18, the President of Uzbekistan signed the Regulation “On Guarantees for the Protection of Bank Deposits.” This laws goals to reinforce the safety of residents’ financial savings and strengthen the nation’s monetary system.
Underneath the brand new regulation, the federal government ensures the return of deposits as much as 200 million UZS per financial institution.
What Adjustments Await Depositors?
Rustam Rafikov, Appearing Managing Director – Head of Retail Banking at Octobank, defined how this regulation will affect financial institution prospects and the advantages it offers.
Key Ensures for Depositors
- All new deposits opened after the regulation takes impact are insured by the federal government as much as 200 million UZS per financial institution.
- Beforehand opened deposits stay absolutely protected, no matter their quantity.
- If a buyer has deposits in a number of banks, the insurance coverage applies individually to every one.
- The ensures apply not solely to people but in addition to entrepreneurs, together with sole proprietors.
Why Is the Restrict Set at 200 Million UZS?
In keeping with Rustam Rafikov, most international locations impose limits on government-backed deposit insurance coverage. This helps guarantee the steadiness of the monetary system and reduces the burden on the state funds in case of financial crises.
“Providing unlimited insurance coverage for all deposits could create a significant financial strain during unstable periods. The 200 million UZS limit is an optimal solution – it covers the majority of depositors and ensures faster compensation payouts if needed,” explains Rustam Rafikov.
What If a Deposit Exceeds 200 Million UZS?
Banks proceed to meet their obligations to prospects as normal. The restrict applies solely in instances of financial institution liquidation.
“Keeping money in a bank is not only safe but also profitable. Even if a deposit exceeds 200 million UZS, the bank remains fully responsible to the depositor,” notes Rustam Rafikov.
Compensation Funds Are Now Quicker
Beforehand, within the occasion of a financial institution closure, depositors needed to wait as much as 83 days to obtain their funds. The brand new regulation considerably reduces this era:
- 20 working days – instantly after the regulation takes impact.
- 15 working days – from 2026.
- 7 working days – from 2027.
Why Is Holding Cash in a Financial institution the Greatest Selection?
In keeping with Rustam Rafikov, financial institution deposits supply quite a few benefits in comparison with conserving money at house:
Safety from inflation – Money loses its buying energy over time, whereas deposits assist protect capital by rates of interest.
Safety – Money is weak to theft, loss, and fireplace, whereas financial institution deposits are protected by authorities ensures.
Comfort and accessibility – Accounts might be managed on-line, with versatile deposit and withdrawal choices.
Further ensures – Banks bear common audits, preserve capital reserves, and obtain rankings from worldwide businesses.
Conclusion
The brand new regulation makes Uzbekistan’s deposit system extra secure and clear. The established insurance coverage restrict encourages depositors to distribute their funds throughout a number of banks, lowering dangers, whereas additionally motivating banks to keep up monetary stability and a robust repute to draw new prospects.
