Insurance compensation for deposits in some cases to increase to 10 million rubles
The State Duma has adopted a bill in the second reading to increase the maximum amount of insurance compensation for individuals’ deposits in some cases to 10 million rubles. Currently, this amount of insurance compensation is only valid for funds in escrow accounts opened for the purchase and sale of real estate and for settlements under shared-equity construction contracts.
After the adoption of the bill, depositors will be able to count on increased insurance compensation if their accounts have been credited with real estate sale funds, inheritance funds, social benefits or subsidies, insurance payments for damages to life, health and property, and payments for the execution of court judgements. In these cases, individuals can expect to be reimbursed up to 10 million rubles, but only if the bank's licence was revoked or a moratorium on payments on deposits was imposed within three months from the date of funds receipt to the account.
In addition, the payment of insurance compensation in the amount of up to 10 million rubles will apply to accounts and deposits for major repairs of multi-family buildings.
The bill also provides for the inclusion of accounts of individual non-profit organisations in the category of insured accounts and deposits with the compensation amount of up to 1.4 million rubles. These non-profit organisations include gardening and horticultural non-profit partnerships, homeowners' associations, garage and garage-building cooperatives, housing and housing-building cooperatives, charitable foundations, Cossack societies, communities of indigenous peoples of the Russian Federation, religious organisations, and organisations that carry out socially useful services.
Changes in the legislation will also allow the Deposit Insurance Agency (DIA) to more promptly implement decisions to reduce the rates of insurance premiums paid by banks to the deposit insurance system. They also provide for the introduction of new rates for the past quarter.
In addition, the amendments provide for changing the criteria for assigning higher insurance premium rates to banks for foreign currency deposits as well as savings certificates with no right to receive a demand deposit when the interest on deposits exceeds the basic level of return on deposits.