Medium-sized businesses’ accounts and deposits to be included in deposit insurance system
The State Duma approved a draft law in the second reading, expanding the coverage of the deposit insurance system. Now, the insurance coverage will include accounts and deposits of medium-sized enterprises, socially oriented non-profit organisations, trade unions, and individuals engaged in professional activities, specifically lawyers and notaries. The standard compensation will be up to ₽1.4 million.
The draft law enhances the procedure for paying insurance compensations to individuals, including individual entrepreneurs, having both a deposit and a loan with a bank whose licence has been revoked. Earlier, they could receive funds from deposits only net of the outstanding loan. From now on, they will be paid the full compensation amount which they may use at their own discretion, including to repay the debt.
Banks, the Bank of Russia, and the Deposit Insurance Agency will need time to adjust their internal systems. Therefore, the new perimeter of the deposit insurance system and the amended procedure for paying insurance compensations will become effective 90 and 270 days after the publication of the law, respectively.