Citizens who entrust their money to banks can rest assured of its safety, even in the face of unforeseen circumstances affecting the banking sector.
This assurance was reiterated by Patrick Kagoro, Chairman Board Deposit Protection Fund (DPF), during a press briefing in Fort Portal City aimed at publicizing the fund’s services.
About DPF
Established in 1993, the Deposit Protection Fund which also happens to be a government agency, offers deposit insurance to customers of deposit-taking institutions such as banks, safeguarding their funds in the event of uncertainties like liquidation.
Kagoro emphasized that many bank customers hastily withdraw their savings when they hear of a bank closure, unaware that their funds are fully protected by the DPF, licensed by the Bank of Uganda.
“We are here to let all bank Customers in the country know that it is our responsibility to make sure they acquire their savings through us, should anything unfortunate happen to the banking institutions in the country.” Stated Kagoro
How much can be insured?
In the event of a bank closure, Kagoro explained that the DPF considers the amount of money in one’s account, compensating up to 10 million Ugandan shillings, with exceptions for amounts exceeding this threshold.
“When a customer has total amount that exceeds 10 million Shillings, we shall be in position to only provide them with 10 million Shillings. We aim largely at protecting the everyday citizen that hustled to save their money in banks.” Added Kagoro.
He further highlighted the agency’s role in fostering confidence in the banking system by averting panics among banks and customers nationwide.
What you need for the Insurance
However, Kagoro stressed the importance of ensuring that customers’ credentials, including their names and other details, match perfectly with those on their national identity cards to prevent fraud and ensure eligibility for insurance coverage.
“We have noted with concern the rate at which fraud has increased in the country, to avoid this, we ensure that the beneficiary’s credentials in the respective banks perfectly match with the details on their national identity cards” Remarked Kagoro.
