The government supported the increase in payments to customers of collapsing banks

Photo: from the government website

The government has given a positive review of the bill on increasing deposits from the current 1.4 million to 10 million rubles for bank customers who did not manage to pick up their money before the license from calling the bank. Also, in conclusion, published on the State Duma website, wishes for the finalization of the bill are listed.

The bill on compensation to depositors of chopped banks in the amount of 10 million rubles instead of the current 1.4 million rubles was prepared by the Central Bank and the Deposit Insurance Agency (DIA).

• For the first time in June 2018, the Central Bank Chairman Elvira Nabiullina spoke about such changes.
• Deputies, led by the head of the Duma committee on the financial market, Anatoly Aksakov, introduced a bill in mid -July 2019.
• The document proposes to pay the depositors increased compensation for the sale of housing or land, the receipt of the inheritance, compensation for damage to life, health or property, social payments and benefits, the execution of the court decision, and the receipt of grants.
• Also, the legal entities who can count on compensation include horticultural and gardening non-profit partnerships, HOAs, garage and housing cooperatives, Cossack societies and the communities of indigenous peoples, religious organizations and socio-handicraft NPOs.

Now the maximum amount of compensation for deposits in one bank is 1.4 million rubles. A separate insurance compensation for at least 10 million rubles is paid on escrow accounts open for the purchase and sale of real estate and settlements under a shared construction agreement.

The government also refers to the need to finalize the bill. In particular, it is said that the draft law provides for a decrease in the threshold of the basic level of deposit revenue for banks that pay an increased rate of insurance premiums to the fund, but there are no settlements confirming the need for this reduction.

• The authors of the bill were asked to assess the impact of an increase in insurance on the amount of funds in the compulsory deposit insurance fund.
• In addition, they were offered to increase the rate of insurance premiums that are paid by banks participating in the deposit insurance system.