Deposit Insurance Act placed in JS

A bill seeking to create a fund with premium earned from insurance on bank deposits was introduced in the Jatiya Sangsad yesterday.

Finance Minister SAMS Kibria introduced the bill titled "Deposit Insurance Act, 2000" proposing the scrapping of the Bank Deposit Insurance Ordinance of 1974.

The bill provides for allowing the Bangladesh Bank to maintain a fund called 'Bangladesh Bank Deposit Insurance Fund'. The money to be deposited in the fund will be utilised in refunding the depositors' money in case of liquidity crisis of a bank, proposes the bill.

The new bill further provides that the Fund authority will be able to invest in any venture approved by the central bank.

The House however sent the bill to the Standing Committee on the Ministry of Finance for scrutiny and reporting back within 15 days.