“It is safer and more beneficial to keep money in a bank than at home, even if the amount exceeds 200 mln soums.”
On February 18, the President of Uzbekistan signed the law titled “On Guarantees of Protection of Deposits in Banks.” This law ensures that the state will guarantee deposits of up to 200 mln soums in each bank. Rustam Rafikov, the Acting Managing Director and Head of the Octobank Retail Block, shared his thoughts on what this new legislation means for depositors.
What the new law ensures
- All new deposits opened after the law comes into force will be guaranteed by the state up to 200 mln soums in one bank.
- Previously opened deposits are fully protected – regardless of the amount.
- If you have several deposits in different banks, the guarantee applies to each bank separately.
- Guarantees apply not only to individuals, but also to entrepreneurs (including sole proprietorships).
Why the limit of 200 mln soums was introduced
“All over the world there is a practice when the state guarantees deposits within a certain amount. This protects clients and makes the financial system more stable. If we cover absolutely all deposits without limits, in a crisis situation it may create a big burden on the budget. The limit of 200 mln soums is optimal, it covers the amount of the majority of depositors and allows faster repayment of money,” Rustam Rafikov explained.
If the deposit is more than 200 mln soums
It is possible to keep any amount in the bank. The limit applies only to cases when the bank is liquidated. In normal mode, the bank continues to fulfil its obligations to clients, even if the amount is larger.
“Keeping money in the bank is safer and more profitable than at home. Even if the amount is more than 200 mln, the bank is still liable to the depositor,” says Rustam Rafikov.
Compensations are now paid faster
Previously, when a bank closes, depositors could wait up to 83 days for payment. Now this period has been shortened:
- 20 working days – from the moment the law comes into force.
- 15 days – from 2026.
- 7 days – from 2027.
Why it is better to keep your money in a bank
Keeping money in deposits has more advantages compared to cash at home, explains Rustam Rafikov:
Inflation protection. Cash kept at home gradually loses its purchasing power due to inflation. A deposit, on the other hand, protects funds from depreciation, as the interest rate often compensates for inflationary losses.
Security. Cash in the home is susceptible to theft, fire and other circumstances. Unlike deposits, they cannot be recovered through legal procedures.
Convenience and flexibility. Modern technology allows you to manage deposits remotely via mobile app and internet banking. Banks offer deposits and savings accounts with the ability to replenish and withdraw funds at any time.
Additional guarantees. In addition to state insurance, banks offer their own protections: they undergo independent audits, have capital to cover liabilities and are rated by international agencies.
The new law makes Uzbekistan’s deposit system more predictable and stable, Rustam Rafikov said. In addition, the limit on the insured amount encourages people to spread their savings between different banks, reducing risks, and encourages banks to feel more responsible, because they are interested in improving their reputation and financial health to attract and retain large depositors.
