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Deposit insurance

Deposit insurance

What is the deposit and savings insurance system?

The deposit and savings insurance system is a state protection of the rights and legitimate interests of depositors, aimed at paying insurance compensation by the Fund to depositors upon the occurrence of an insured event in a credit institution.

The purpose of the deposit and savings insurance system is to contribute to ensuring the stability of the financial system of the Republic of Tajikistan, including maintaining public confidence in the banking system. The issues of insurance of savings of individuals are regulated by the Law of the Republic of Tajikistan “On Insurance of deposits and Savings”.

To ensure the functioning of the deposit and savings insurance system, the Deposit and Savings Insurance Fund of Tajikistan operates. The Fund is a non-profit legal entity that, according to the Law, protects the rights and legitimate interests of depositors by paying insurance compensation.

The Fund pays insurance compensation to depositors upon the occurrence of an insured event within the amount established by Law, maintains a register of credit institutions participating in the deposit and savings insurance system, collects and records payments from credit institutions, as well as other functions provided for by Law.

 

 

The objectives of the Foundation are:

— protection of the rights and legitimate interests of depositors by paying insurance compensation;

— ensuring the functioning of the deposit and savings insurance system and promoting the stability of the financial system in the Republic of Tajikistan;

— strengthening public confidence in the banking system of the Republic of Tajikistan.

 

 

Contacts:

• Address: Republic of Tajikistan, 734025 Dushanbe, 77/2 Mayakovsky str.
• Website: www.idif.tj
• Phone number for inquiries: +992 44 600-32-45
• Email: info@idif.tj

 

 

The level and coverage of the Fund’s insurance coverage

Insurance of deposits and savings of depositors is carried out by the Fund on a mandatory basis.

In accordance with the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings” (as amended by the Law of the Republic of Tajikistan “On Amendments and Additions to the Law of the Republic of Tajikistan “On Insurance of Savings of Individuals” dated 03/15/2023 No.1961), depositors whose funds are subject to insurance are individuals, including individual entrepreneurs, as well as legal entities of a small business entity and non-profit organizations.

 

Deposits and savings of depositors in national and foreign currencies placed on savings and term accounts, as well as on bank payment cards of a credit institution, which are confirmed by bank deposit agreements and (or) bank accounts of salary and pension payment cards and (or) savings books, are objects of compulsory insurance.

 

 

At the same time, the objects of compulsory insurance do not include:

— metal accounts of individuals and legal entities;
— money and assets deposited in bank safe deposit boxes;
— bank certificates;
— deposit and savings accounts of legal entities, with the exception of small businesses and non-profit organizations;
— deposit and savings accounts opened in Islamic credit institutions;
— electronic money;
— deposit and savings accounts, the rights to which are transferred to other persons on the basis of an agreement concluded outside the credit institution;
— deposit and savings accounts, the owner of the right to dispose of which has not been determined in the credit institution.
Deposit insurance is completely free for depositors and does not require the conclusion of a special insurance contract — all costs and funds are borne by the credit institutions and the Fund themselves. Depositors’ funds are automatically insured, and upon the occurrence of an insured event, compensation is paid by the Fund.

Therefore, upon the occurrence of an insured event in a credit institution, depositors have the legal right to receive insurance compensation for their savings in a credit institution.

 

 

What is an insured event?

An insured event is the forced liquidation of a credit institution by a court decision not on the grounds of bankruptcy or on the grounds of bankruptcy in accordance with the Law of the Republic of Tajikistan “On Liquidation of Credit Organizations”, as a result of which the obligations of the Deposit and Savings Insurance Fund of Tajikistan arise to pay the amount of insurance compensation to depositors of bankrupt credit organizations.

 

 

The amount of the insurance indemnity

Upon the occurrence of an insured event, the Fund pays depositors compensation for deposits and savings in a credit institution within the maximum amount of insurance compensation established by law.

In accordance with the Law, the amount of compensation for insured deposits and savings is no more than 35,000 somoni. In accordance with the procedure established by Law, the amount of insurance compensation is established as follows:

— If the depositor has several deposit and savings accounts with a credit institution, then these accounts are recognized as one savings account and compensation is paid based on the total amount of funds held in deposit and savings accounts in an amount not exceeding 35,000 somoni;

— If an insured event occurs in several credit institutions in which the depositor has deposit and savings accounts, the amount of insurance compensation is calculated separately for each credit institution.

Interest on deposits and savings is not reimbursed by the Fund. If the interest capitalization is provided for under the deposit and savings account agreement, then the refund will be paid for the balance of the deposit and savings accounts.

Deposits and savings placed in the national currency are reimbursed in the national currency. Deposits and savings placed in foreign currency are reimbursed in national currency at the official exchange rate set on the day of the insured event.

 

 

* Note: If the amount of deposits and savings of a depositor in a liquidated credit institution exceeds the amount of insurance compensation, the remaining amount is paid by a special administrator (liquidator) in accordance with the procedure established by law.

 

 

Payment of insurance indemnity

After the occurrence of an insured event, the Fund publishes an announcement in the media regarding the date, time, form and procedure for the insurance indemnity. The announcement is also placed at the entrance to the building of the Fund, the agent bank and the liquidated credit institution, and on the official website of the Fund.

 

The maximum amount of insurance compensation determined by the current legislation is no more than 35,000 somoni. At the same time, according to the procedure established by law, if one depositor has two or more savings accounts in the bank, these accounts are considered as one account and compensation for them is paid in an amount not exceeding the amount of insurance compensation established by law. The remaining amount of savings is paid in the process of liquidation by a special administrator (liquidator) of a credit institution in accordance with the procedure established by law.

 

 

The procedure for obtaining insurance compensation is as simple as possible. To receive insurance compensation, the depositor (applicant) or his representative must contact the agent bank and present the following documents:

• An application for payment of insurance compensation in the prescribed form. A copy of the application can be obtained and filled out at the agent bank (usually the agent bank provides a completed electronic application form to the depositor for signature);
• A document certifying the identity of the depositor;
• Taxpayer identification number;
• Bank deposit agreement;
• A power of attorney if the depositor’s legal representative acts on behalf of the depositor.

In case of a change in the surname, first name or patronymic, the applicant must provide the agent bank with a certificate of a change in the surname, first name or patronymic or a marriage certificate issued by an authorized body.

Depositors who are unable to appear in person at the agent bank may instruct their representative to submit an application on their behalf on the basis of a power of attorney issued by a notary authority. At the agent bank, the depositor’s representative must have a power of attorney and an identity document.

 

 

Information for depositors

1. Check the selected credit institution. Make sure that the credit institution in which you are going to make a deposit is a member of the deposit and savings insurance system and has a certificate of membership in the Deposit and Savings Insurance Fund of Tajikistan.

2. Check the details of the deposit agreement. Carefully check the spelling of your name, passport data, TIN, phone number and postal address in the deposit and/ or savings agreement, always inform the credit institution about changes — this will allow you to easily find you among the depositors when paying insurance compensation. Ask the credit institution about the insurance of your funds in the Deposit and Savings Insurance Fund of Tajikistan.

3. Remember that in the event of an insured event, compensation is not paid for the following deposits and savings:

— deposits and savings obtained by criminal means or seized by the court;

— deposits and savings, which, according to the conclusion of the National Bank of Tajikistan, contributed to the deterioration of the financial situation of the credit institution;
— deposits and savings defined by law of related (affiliated) persons of a credit institution, as well as persons who were considered such during the last year before the liquidation of the credit institution;
— deposits and savings of partners of the auditing firm who were involved as auditors of the credit institution in the calendar year preceding the date of the insured event;
— deposits and savings of persons who own more than five percent of the shares of a credit institution on the basis of a benefit;
— deposits and savings placed in foreign branches of a credit institution;
— deposits and savings in the amount of any outstanding debt of the depositor to the credit institution;

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