7th September 2022, Kathmandu
Deposit protection is the act of protecting the depositors by returning the deposit amount up to that limit if the amount kept in savings and term accounts opened in the name of natural persons in banks and financial institutions licensed by Nepal Rastra Bank is declared problematic and cannot be returned.
Currently, up to 3 lakhs in savings and fixed term accounts of banks and financial institutions in the name of natural persons are protected, but it has been increased to 5 lakhs. The government of Nepal, the Ministry of Finance has published a notice in the gazette that the limit of deposit insurance has been increased to 5 lakh from 1 July 2079.
Earlier, the deposit of Rs 3 lakh was protected. However, now the amount of up to 5 lakhs in savings and term accounts of banks and financial institutions in the name of individuals will be protected.
On 15th Jestha 2079, Finance Minister Janardan Sharma mentioned in the budget submitted to Parliament for the financial year 2079/80 that the deposit protection limit would be increased.
Sharma, who resigned to help the parliamentary investigation committee after being accused of manipulating the tax rate by allowing unauthorized persons to enter the budget, had signed the file to increase the limit of deposit insurance when he was reappointed as a minister.
The decision to increase the limit of deposit insurance has been published in the gazette and has been implemented as soon as the finance minister has signed it to implement it according to the provisions of the budget.