Deposit Insurance Trust Fund earnings increases by Tk36cr
The Deposit Insurance Scheme was introduced under an Ordinance of 1974, eventually becoming law in 2000
The net income of the Deposit Insurance Trust Fund (DITF) has increased during the 2019-20 fiscal year, according to central bank sources.
During the 2018-19 fiscal year, the net income of DITF was more than Tk633 crore. In the 2019-20 fiscal year, this figure was Tk670 crore, representing an increase of over Tk36 crore in the last fiscal year alone.
DITF was formed to protect small depositors.
Usually, banks have to insure depositors' account balance for amounts of around Tk1 lakh or less. In the event that the bank is unable to repay the deposit due to a liquidity crisis, the money will be paid out from the insurance.
Depositors of small amounts receive this protection under the Bank Deposit Insurance Act, 2000. Under this Act, the Deposit Insurance Trust Fund was formed under the supervision of the Bangladesh Bank board.
The Deposit Insurance Scheme was introduced under an Ordinance of 1974, eventually becoming law in 2000.
According to central bank sources, the public at large is still largely unaware of this Deposit Insurance Scheme. The relevant information has been published on the Bangladesh Bank website as part of a bid to raise awareness on the initiative.
