Finance Minister Matia Kasaija has today unveiled the Deposit Protection Fund of Uganda (DPF) in which Government has made a decision to increase the deposit insurance limit from UGX 3 million to UGX 10 million.
Unveiling the Fund at the Uganda Media Centre, the Finance Minister, said the mandate of the fund is to act as a deposit insurance scheme for customers of contributing institutions.
He said the fund will contribute to enhanced public confidence in the financial sector by ensuring that depositors are paid their protected deposits in time, in the unlikely event that a contributing institution is closed.
The Deposit Protection Fund of Uganda is a legal entity created by the Government of Uganda to ensure that depositors are paid their protected deposits in the event of failure of a contributing Institution.
The DPF is financed from premiums levied on all deposit taking institutions which are regulated by Bank of Uganda. The collected premiums are invested in Government of Uganda treasury instruments to ensure safety and liquidity.
“I wish to reassure the public that the Government of Uganda is committed to ensuring that the banking sector remains safe and sound. The public is hereby encouraged to place their savings in the formal banking sector,” said Kasaija.
The process of operationalizing the fund started in 2017 with the appointment and inauguration of the 7 member board of Directors chaired by Ben Patrick Kagoro.
The Deposit Protection Fund of Uganda and the Bank of Uganda are due to host the first ever International Conference on Deposit Insurance from 15th to 19th September 2017 at Lake Victoria Serena Golf Resort and Spa under the theme: Why Deposit Insurance