In the event of a bank's liquidation, the government now guarantees depositors a refund of up to 200 million sums.

The text of the law "On Guarantees for the Protection of Citizens' Deposits in Banks" was published on February 13 in the newspaper "Narodnoe Slovo".

According to the document, only amounts not exceeding 200 million sums per depositor in one bank will be covered by state guarantees. If a citizen has accounts in multiple banks, the protection applies to each bank separately. It is emphasized that the new threshold covers 97% of depositors.

The changes in the rules will only affect deposits opened after the law comes into effect. For deposits opened before February 19, 2025, the full amount is guaranteed to be returned.

Additionally, the guaranteed amount of 200 million sums will now extend to both sum and currency deposits of individual entrepreneurs and legal entities.

According to the new law, the following types of deposits are covered by guarantees:

• The balance of funds deposited in the bank under a bank deposit or bank account agreement;

• Funds held in separate accounts until the conditions of the contract are fulfilled (for example, "escrow" services);

• Funds verified by a savings (deposit) certificate;

• The balance of accrued interest on the bank deposit or account agreement that has not been paid at the time of the guarantee event, provided that its accrual is stipulated in the contract;

• The balance of accrued but unpaid interest indicated in the savings (deposit) certificate.

The following types of deposits are not covered by guarantees:

• Demand deposits opened before the enactment of the law do not fall under full state guarantee;

• Deposits of financial organizations, including banks, non-bank credit organizations, insurance companies, investment and mutual funds, leasing companies, as well as other organizations conducting financial activities under a license or with the permission of the authorities of Uzbekistan and foreign states;

• Deposits of state organizations and enterprises, as well as state bodies of Uzbekistan or foreign states;

• Deposits of individuals connected to the bank (except for board members and key personnel of the bank, if their amount does not exceed their salary for the last three months);

• Funds placed in foreign branches or subsidiary banks;

• Money in individual retirement savings accounts;

• Funds obtained illegally, including money laundering, financing terrorism, and proliferation of weapons of mass destruction (if confirmed by a court).

It is emphasized that the new limit on guaranteed deposit amounts does not exempt banks from obligations to depositors. With the state covering 200 million sums, the depositor will be able to claim the remaining amount from the bank.

Furthermore, the document proposes to reduce the time frame for starting compensation payments upon the revocation of a bank's license – from 83 days to 20 days. Starting in 2026, the maximum period will be 15 days, and from 2027, it will be seven days.

It is worth noting that the Senate adopted this document in January of this year. The authorized body responsible for ensuring deposit protection is the Deposit Guarantee Agency.