5 key changes in new deposit law for bank, NBFI depositors

The advisory council of the interim government has approved amendments to the Deposit Protection Ordinance, introducing sweeping changes that will affect millions of depositors, now, over 16 crore, in banks and non‑bank financial institutions (NBFIs).

Based on finance ministry proposals and Bangladesh Bank data, here are five key points that matter for depositors.

Protection limit doubled to Tk 2 lakh

The ceiling for insured deposits has been raised from Tk 1 lakh to Tk 2 lakh. According to the finance ministry, this covers 93 percent of all bank accounts, meaning most small savers will now be insured if a bank fails.

Faster payouts for depositors

The payout period for insured deposits will shrink sharply, from 180 days to just 17 working days. This ensures quicker access to funds for customers of troubled banks.

NBFIs included, but only from 2028

For the first time, NBFI depositors will be brought under the deposit protection law. However, coverage begins in July 2028. Until then, nearly Tk 50,000 crore in deposits across 4.8 lakh NBFI accounts remain outside the scheme.

Separate funds for banks and NBFIs

Two distinct protection funds will be created, each managed independently under a new Deposit Protection Authority supervised by Bangladesh Bank. Contributions will be risk‑based, with NBFIs required to pay 0.5 percent of paid‑up capital into the fund by July 2028.

Safeguards for mergers and stability

The ordinance allows conditional financial support during bank mergers. Tk 12,000 crore from the existing fund will recapitalise the five merging shariah‑based banks. Investments of protection funds will be restricted to safe assets, ensuring depositor confidence.