Mega Bank Nepal insures deposit
Wed, Sep 7, 2011 12:00 AM on Others,
KATHMANDU:
The deposit insurance scheme has formally started for the commercial banks as Mega Bank signed the deposit insurance agreement with Deposit and Credit Guarantee Corporation (DCGC) today.
Mega Bank has become the first class ‘A’ financial institution to get its small deposits insured by the deposit insurer. Mega Bank’s CEO Anil Keshary Shah and general manager of Deposit and Credit Guarantee Corporation Bhola Prasad Sharma Adhikari signed the deposit insurance agreement on behalf of their respective institutions today. As per the deposit guarantee regulation, in case of bankruptcy of a financial institution, a small depositor, who has a deposit up to Rs 200,000, will get total deposit amount and interest within 90 days from the date the institution goes under liquidation.
“We are hopeful that the insurance coverage for deposits up to Rs 200,000 held by individual depositors of our bank will enhance the depositors’ confidence on our bank,” said Shah after signing the agreement. Deposit and Credit Guarantee Corporation started deposit insurance from February. But in the begining only class ‘C’ financial institutions’ deposits were insured. Though both fiscal and monetary policy had asked finance companies, development banks and micro finance banks, deposit guarantee scheme gained momentum only after the central bank made the small deposit insurance up to Rs 200,000 mandatory for the Class-B and Class-C financial institutions in February.
The current fiscal year’s monetary policy and budget asked the commercial banks also to get their small deposits insured. Nepal Rastra Bank (NRB) had already issued the circular to commercial banks to get their deposits of upto Rs 200,000 insured.
Source: THT
The deposit insurance scheme has formally started for the commercial banks as Mega Bank signed the deposit insurance agreement with Deposit and Credit Guarantee Corporation (DCGC) today.
Mega Bank has become the first class ‘A’ financial institution to get its small deposits insured by the deposit insurer. Mega Bank’s CEO Anil Keshary Shah and general manager of Deposit and Credit Guarantee Corporation Bhola Prasad Sharma Adhikari signed the deposit insurance agreement on behalf of their respective institutions today. As per the deposit guarantee regulation, in case of bankruptcy of a financial institution, a small depositor, who has a deposit up to Rs 200,000, will get total deposit amount and interest within 90 days from the date the institution goes under liquidation.
“We are hopeful that the insurance coverage for deposits up to Rs 200,000 held by individual depositors of our bank will enhance the depositors’ confidence on our bank,” said Shah after signing the agreement. Deposit and Credit Guarantee Corporation started deposit insurance from February. But in the begining only class ‘C’ financial institutions’ deposits were insured. Though both fiscal and monetary policy had asked finance companies, development banks and micro finance banks, deposit guarantee scheme gained momentum only after the central bank made the small deposit insurance up to Rs 200,000 mandatory for the Class-B and Class-C financial institutions in February.
The current fiscal year’s monetary policy and budget asked the commercial banks also to get their small deposits insured. Nepal Rastra Bank (NRB) had already issued the circular to commercial banks to get their deposits of upto Rs 200,000 insured.
Source: THT
