Kathmandu: The re-appointed Finance Minister, Janardhan Sharma, has made a decision to increase the limit of deposit insurance from Rs. 3 lakh per person to Rs. 5 lakh per person. It is the first decision of Sharma immediately after his second innings in the ministry of finance.
The central bank has an arrangement of the deposit collected by the bank and financial institutions(BFIs) through Deposit and Credit Guarantee Fund(DCGF). The DCGF acts as an insurer which provides guarantee of safety of people’s deposit in the BFIs upto Rs. 3 lakh.
In the budget of the current financial year, it was announced that the deposit insurance limit would be increased from Rs. 3 lakh to Rs 5 lakh.
Sharma had resigned from the post of finance minister after he was accused of preparing the budget by allowing middlemen to enter the finance ministry during the last hour preparation of the fiscal budget. After the Parliamentary Inquiry Committee submitted its report saying that no evidence was found to confirm the allegations against Sharma, he got exemption.
It is mentioned in the point number 333 of the budget of the current year that under the protection program run by the DCGF, the deposit insurance will be increased from Rs. 3 lakh to Rs. 5 lakh per person.
