August 30: Insurance on deposits and loans has increased in the Deposit and Credit Guarantee Fund. The fund shows that insurance on the deposits of 638,000 depositors has been done within the fiorst month of the current fiscal year (mid-July to mid-August).

Bishnu Babu Mishra, the chief executive officer (CEO) of the fund, informed that the number of insurances on deposits have increased in the review period.

He stated that the reason behind this is the distribution of the branches of banks all over the country.

The savings, current, call and term deposits of 26.64 million persons in all banks and finance companies have been insured in between mid-July to mid-August. The fund had insured deposits worth Rs 689.49 billion in 26 million accounts of the 72 banks and finance companies till mid-July.

Similarly, deposits worth Rs 603.39 billion in 2.2 million accounts were insured during the corresponding period of last fiscal year.

Deposits totaling to Rs 713.2 billion of 26.66 million depositors have been protected because of the insurance done by the banks and finance companies. Furthermore, loans totaling to Rs 80 billion taken by 899,000 debtors have also been insured.

The fund has been providing protection to savings or term account holders that have deposits up to 300,000, since October/November 2018.

Protection was given for up to 200,000 in deposits before this. According to the provision of Nepal Rastra Bank, a protection of maximum 300,000 can be given on the savings and term accounts of a depositor.

The fund has also been providing protection of maximum Rs 20 million for loans on SME and agricultural loans and protection of maximum Rs 1.5 million for deprived sector lending to banks and finance companies.

Deposit and Credit Guarantee Fund has insured additional 1.1 million accounts of banks and finance companies within the first month of the new fiscal year. CEO Mishra informed that the banks have insured Rs 80 billion debtors by mid-August.