Keeping Money in Bank Is Safer and More Profitable Than at Home – Even for Amounts Exceeding UZS 200 Mln
What does this mean for depositors? Acting Managing Director and Head of the Retail Division at Octobank, Rustam Rafikov, explains.
State Guarantees for Bank Deposits
On February 18, the President of Uzbekistan signed the Law on Guarantees for the Protection of Bank Deposits. Under the new legislation, the government now guarantees deposits up to UZS 200 mln per bank. Rustam Rafikov, Acting Managing Director and Head of the Retail Division at Octobank, comments on what this change means for depositors.
Key Provisions of New Law
- All new deposits opened after the law comes into effect are guaranteed by the state up to 200 million UZS per bank.
- Deposits made prior to the law’s enactment are fully protected, regardless of the amount.
- If a depositor holds multiple accounts across different banks, the guarantee applies separately to each bank.
- The guarantees extend not only to individuals but also to entrepreneurs, including sole proprietors.
Why Is There UZS 200 Mln Limit?
«Globally, it is common practice for governments to guarantee deposits up to a certain limit. This approach safeguards customers while maintaining financial system stability. If all deposits were covered without restrictions, a crisis could place excessive strain on the budget. The UZS 200 mln limit is optimal, as it covers the majority of depositors and ensures quicker reimbursements,» explains Rustam Rafikov.
What If Deposit Exceeds UZS 200 Mln
Banks can hold deposits of any size. The limit applies only in cases where a bank undergoes liquidation. In normal circumstances, a bank continues to fulfil its obligations to customers, even for deposits exceeding the guaranteed amount.
«Keeping money in a bank is safer and more profitable than keeping it at home. Even if the deposit exceeds UZS 200 mln, the bank remains responsible to the depositor,» says Rustam Rafikov.
Faster Compensation Payments
Previously, in the event of a bank closure, depositors could wait up to 83 days for their funds to be reimbursed. The new law significantly reduces this waiting period:
- 20 working days from the law’s enactment.
- 15 days from 2026.
- 7 days from 2027.
Why Keeping Money in Bank Is Better Choice
Rustam Rafikov outlines the advantages of keeping savings in a bank rather than in cash at home:
- Protection against inflation – Cash stored at home gradually loses purchasing power due to inflation. Deposits, on the other hand, help protect savings from devaluation, as interest rates often offset inflationary losses.
- Security – Cash kept at home is vulnerable to theft, fire, and other risks. Unlike bank deposits, lost cash cannot be recovered through legal processes.
- Convenience and flexibility – Modern banking technologies enable remote account management via mobile apps and online banking. Banks also offer savings accounts with options for deposits and withdrawals at any time.
- Additional guarantees – In addition to state-backed insurance, banks implement their own protective measures, including independent audits, capital reserves to cover liabilities, and ratings from international agencies.
According to Rustam Rafikov, the new law makes Uzbekistan’s deposit system more predictable and stable. Furthermore, the deposit insurance limit encourages people to diversify their savings across multiple banks, reducing risk exposure. At the same time, banks are incentivised to uphold their financial health and reputation to attract and retain high-value depositors.
