Issues of depositors’ protection

The system of compulsory insurance of bank deposits, accession to which is mandatory for all banks operating with private deposits, was established both to protect the rights and interests of depositors and to strengthen confidence in the banking system in general. The fixed cash payments in the event of termination of the bank operation or withdrawal of its license are made by the Deposit Insurance Agency and the realization of insurance starts automatically by law, without signing of a special agreement. The amount of compensation does not exceed 700,000 rubles, even if an investor uses several accounts in one bank to keep the money. To receive the indemnification a depositor must submit an application and provide an identification document. The Agency makes a payment within three days from the date of filing, but not earlier than 14 days from the occurrence of loss (this is the period necessary to obtain information from the bank about deposits and organization of settlements). The bank is liable on the bank deposit agreement in case of failure to fulfill the refund obligations, which are stipulated by the law or the agreement.