Deposit Insurance System
The statutory individual bank deposit insurance system (DIS) is a special governmental programme of the RF implemented in compliance with the Federal Law of The Insurance of Individual Deposits with the banks of the Russian Federation. Its primary goal is to protect individual savings placed on deposits and accounts with Russian banks in the RF area.
The guarantor of money repayment to a depositor is the Russian Government.
A depositor is not required to enter into a separate insurance agreement; it is secured by operation of law.
Funds in roubles and foreign currencies deposited by individuals with a bank pursuant to a bank deposit agreement or a bank account agreement are insured, including capitalized interest (accrued interest added to the deposit), as well as the funds placed into:
- demand and term deposits;
- bank accounts for receiving salaries, pensions, scholarships and social benefits, including with the use of bank cards;
- accounts (deposits) of unincorporated individual businessmen, if the accounts have been opened in relation to the business (for insured events having occurred since 1 January 2014);
- nominal accounts of guardians or trustees, where the beneficiaries are their wards (for insured events having occurred since 23 December 2014);
- escrow accounts opened by individuals for making settlements under real estate transactions, for a term set by the Federal Law (for insured events having occurred since 2 April 2015).
The deposit insurance system operates as follows:
Upon occurrence of an insured event (the Bank loses its license or undergoes moratorium on the settlement of claims towards its creditors), a depositor shall be duly and promptly compensated.
As per the Deposit Insurance law any deposit shall be compensated in size of 100% of the deposit amount with a bank, however, the total compensation shall not exceed RUB 1400 000.
If a customer has more than one deposit with the same bank, the deposit compensation shall be paid pro rata the amounts of such deposits but the total compensation for all deposits should be no more than RUB 1 400 000.
The compensation shall be paid in RF roubles. Foreign currency deposits shall be translated at an exchange rate of the RF CB as of the insured event occurrence date.
The insurance shall not cover:
- bank accounts (deposits) of lawyers, notaries and other persons, if such accounts (deposits) were opened for carrying out professional activity in accordance with the Federal law;
- deposits payable to bearer, including those evidenced with a saving certificate and/or savings book;
- funds in trust with banks;
- deposits with foreign branches of Russian banks
- nominal accounts, except for those opened by guardians or trustees and whose beneficiaries are their wards, pledged accounts and escrow accounts, unless otherwise stipulated by the Federal law.
- funds spent on promissory notes and/or bills;
- funds placed by unincorporated individual businessmen into subordinated deposits.
- In order to claim the compensation, a depositor shall submit to the Deposit Insurance Agency (or to a bank acting as its authorized agent) a relevant application and his/her ID documents. The depositor may do so at any time from the insured event occurrence date until the bank is liquidated (as a rule, such liquidation lasts up to 2 years). The compensation shall be paid both in cash and transferred to a bank account notified by the depositor.