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Home Financial system Deposit Insurance Systems (DIS) Operational Procedure

Operational Procedure


  • Premium: Risk based deposit insurance premiums are introduced in Bangladesh. Thus bank insurance premiums will be aligned with the risk of banks. The following risk based premium rates will be activated from half yearly session of January-July, 2013:

  • Premium Rate

    No. Supervisory Subgroup Premium Rate
    1. Other than EWS and Problem Banks : 0.08%
    2. EWS Banks : 0.09%
    3. Problem Banks : 0.10%








  • Premium Calculation & Collection
    All scheduled bank will provide information for calculation of Deposit Insurance Premium for the half year January-June/July-December. The provided information will be on the basis of position as of the last working day of the preceding half year.

    The formula for working out the half-yearly premium is as follows: -

    Premium = Deposits in taka rounded to thousands X effective Rate/100

    The deposits should be rounded off up to the nearest thousand Taka. [Section-5(3) of Deposit Insurance Act 2000]



Investment & Fund Management


As per article # 3 of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)" Bangladesh Bank is authorized to invest & manage the fund according to the guidance of TRUSTEE BOARD.
  • DITF:
    As per article # 3 of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)", Bangladesh Bank is authorized to carry out a fund called Deposit Insurance Trust Fund (DITF). The role of DIFT is to administer of Deposit Insurance Systems and protect depositors. It provides incentive for sound risk management in the financial system, and promotes and contributes to the stability of the financial system.
  • Investment Scope
    The Fund can be invested in any sectors approved by Bangladesh Bank. At present the fund is only invested in 5 & 10 years Government securities as per decision of the Trustee Board so that deposit insurance protection is stronger/ healthier.

Bank Resolution


  • Settlement of claims
    1. In the event of the winding up or liquidation of an insured bank, every depositor of the bank is entitled to pay of an amount equal to the deposits held by him in the same right and in the same capacity at all the branches of that bank put together, standing as on the date of liquidation (i.e. the date of order for winding up or liquidation) subject to set-off of his dues to the bank, but not exceeding one lakh taka [Section 7(2) of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)"].
    2. Under the provisions of Section 7(3) of the "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)", the liquidator whatever the name called, has been appointed in the respect of an insured bank which has been wound up or taken into liquidation, the liquidator shall, within period of 90 days from the date of his assuming office, furnish to submit to the Trustee Board a list showing separately the amount of the deposit in respect of each depositor and the amount set off, in such a manner as may be specified by the Trustee Board and certified to be corrected by the liquidator.
    3. The Trust Fund is required to pay the amount payable under the provisions of the Act in respect of the deposits of each depositor within 90 days from the date of receipt of such lists.
    4. The claim lists are to be prepared in accordance with the guidelines issued by the Trustee Board and got verified by the Chartered Accountants appointed for the purpose.
    5. The Trustee Board generally makes payment of the eligible amount to the liquidator (bearing any name) of the insured bank, for disbursement to the depositors. However, the amounts payable to the untraceable depositors are held back till the liquidator is in a position to furnish all the requisite particulars.
    6. The insured bank will have to determine the payable amount after deducting the amount receivable from them legally at the time of calculating the deposit amount of the depositors. [Section-7(6) of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)"]

  • Funding in the event of Claims
    Appropriate funding arrangements must be in place to ensure that the scheme has sufficient liquidity to meet potential financial obligation. DITF would be used to provide backup liquidity to the deposit insurance scheme to enable it to make a speedy payout i.e. within 90 days of receipt of depositors list from the failed bank [Section7 (4) of "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)]".
  • Arrangement of Settlement
    It is necessary to determine the total fund available in the Deposit Insurance Trust Fund so that required fund to pay off the Depositors. If there is any shortage of funds, necessary steps are to be taken to obtain loan by the Govt. of Bangladesh as per Section 7(5) of the "Bank Amanat Bima Ain 2000 (The Bank Deposit Insurance Act, 2000)". Bangladesh Government, through Bangladesh Bank will provide residual amount as loan to the fund at Bank Rate, if deposited amount of the fund becomes lower than payable amount as per article 7(5) of Act.
  • Deposit Pay out/Coverage
    If an individual open more than one account in one or more branches of a bank; all these are considered as accounts held in the same capacity and in the same right. Therefore, the balances in all this accounts are aggregated and insurance cover is not more than BDT One hundred thousand in maximum, e.g.

    Saving A/C Current A/C FD A/C Total Deposits Deposit Insured
    Mr. X (individual) 15200 18500 50000 73700 100000
    Mr. X (partner of KL com) 26000 80000 106000 100000
    Mr. X (guardian of Y) 12500 35600 50500 98100 100000
    Mr. X (director of SK group of com.) 80000 90500 170500 100000
    Mr. X (joint with Mrs. X) 150000 70000 202000 100000

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