NBFIs to contribute to deposit protection fund from 2028

The country's non-bank financial institutions (NBFIs), which have so far remained exempt from paying premiums on their deposits to the central bank, will be required to do so starting in July 2028, according to a draft law prepared by the Financial Institutions Division (FID).

Currently, only banks contribute premiums on deposits to the relevant department of the central bank.

Under the proposed law, NBFIs will become members from July 1, 2028, and must deposit their premiums against the deposits by July 31, 2028.

Banks that are already members currently pay the same premium rate of 0.5 per cent to the central bank.

The draft law also proposes that Bangladesh Bank will establish a separate authority within its jurisdiction to oversee the process.

The executive director of the relevant department will serve as the chief executive officer of this authority.

The governing board will consist of seven members, chaired by the Governor of Bangladesh Bank.

Depositors from both banks and NBFIs will get Tk200,000 in the event of liquidation.

The draft law, prepared by Bangladesh Bank, was published by the Ministry of Finance on the Financial Institutions Division's website on March 20.

The ministry has invited stakeholders to provide their feedback on the ordinance.

Bangladesh currently has 61 banks and 35 non-bank financial institutions.

jasimharoon@yahoo.com