Answers to Frequently Asked Questions (FAQs)

 1) What is the deposit and savings insurance system?

The deposit and savings insurance system is the state protection of the rights and legitimate interests of depositors by paying insurance compensation to depositors in the event of forced liquidation of a credit institution.

The purpose of this system is to ensure the stability of the financial system of the Republic of Tajikistan, including maintaining public confidence in the banking system.

The issues of deposit and savings insurance are regulated by the Law of the Republic of Tajikistan “On Deposit and Savings Insurance”.

 2) Who insures deposits and savings?

In order to protect the interests of depositors from the risk of bankruptcy of credit institutions and to insure depositors’ funds, the Deposit and Savings Insurance Fund of Tajikistan (hereinafter referred to as the Fund) has been operating since 2004. The Fund is a non-profit legal entity that, in accordance with the above Law, protects the rights and legitimate interests of depositors by paying insurance compensation. The Fund pays depositors insurance compensation for their deposits and savings within the amount established by law, in the event of an insured event, namely, the forced liquidation of a credit institution – a member of the Fund.

3) What is insurance compensation?

Insurance compensation – funds to which, in accordance with the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings”, a depositor has the right in the event of an insured event.

4) What is an insured event?

An insured event – the forced liquidation of a credit institution by a court decision not on the grounds of bankruptcy or on the grounds of bankruptcy in accordance with the Law of the Republic of Tajikistan “On Liquidation of Credit Institutions”, as a result of which the Fund’s obligations arise to pay the amount of insurance compensation to depositors of a bankrupt credit institution.

5) Which credit institutions are participants in the deposit and savings insurance system and where can I find out about this?

Credit institutions that have received a certificate of membership in the Fund are participants in the deposit and savings insurance system.

The list of credit institutions – participants is published on the Fund’s website at the following link.

6) What needs to be done to insure deposits and does it require additional costs for depositors?

According to the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings”, your deposits are automatically insured in a credit institution that is a member of the deposit and savings insurance system.

Deposit insurance is free of charge and does not require any additional costs from depositors.

7) What amount of compensation will the Fund pay to the depositor?

The amount of insurance compensation for insured deposits and savings is no more than 35,000 (thirty-five thousand) somoni.

At the same time, in accordance with the procedure established by the Law, the amount of insurance compensation is established as follows:

 – if the depositor has several deposit and savings accounts in a credit institution, these accounts are recognized as one savings account and compensation is paid based on the total amount of funds in the deposit and savings accounts in an amount not exceeding 35,000 somoni;

– If an insured event occurs in several credit institutions in which the depositor has deposit and savings accounts, the amount of insurance compensation is calculated separately for each credit institution.

8) What happens if the amount of deposits and savings exceeds the amount of insurance compensation?

If the amount of deposits and savings exceeds the amount of insurance compensation, the Fund will pay you insurance compensation in the amount of 35,000 somoni.

The remaining part of the deposit amount is paid by a special administrator (liquidator) of the bankrupt credit institution in the manner established by law.

9) What types of deposits and savings are insured by the Fund?

Cash in bank accounts in national currency and foreign currency of depositors – individuals, sole proprietors, legal entities, small businesses and non-profit organizations, placed in demand accounts, savings and term accounts are insured by the Fund.

10) Will insurance compensation be paid to holders of bank/debit cards, including salary cards?

Yes, in the event of an insured event on bank accounts of payment cards, as objects of compulsory insurance, insurance compensation is paid.

11) Are interest on deposits and savings reimbursed?

Interest on deposits and savings is not reimbursed by the Fund.

If the deposit and savings account agreement provides for capitalization of interest, then compensation will be paid on the balance of the deposit and savings accounts.

12) In what currency is the compensation paid?

Deposits and savings placed in national currency are compensated in national currency.

Deposits and savings placed in foreign currency are compensated in national currency at the official exchange rate set by the National Bank of Tajikistan on the day of the insured event.

13) What is an agent bank?

An agent bank is a credit institution through which the Fund pays insurance compensation to depositors in accordance with the requirements of the law.

14) How and in what form is compensation paid on deposits?

 After the occurrence of an insured event, the Fund publishes an announcement in the media about the agent bank, date, time, form and procedure for making insurance compensation.

The announcement is also posted at the entrance to the building of the agent bank and the liquidated credit institution, as well as on the official website of the Fund www.idif.tj.

After the Fund announces the start of compensation payments, the depositor or his authorized representative must submit the necessary documents to the agent bank, where he must fill out a written application in the form established by the Fund.

Payment of compensation for savings can be made by the Fund or its servicing bank upon the depositor’s application, either in cash or by transferring funds to an account in a credit institution specified by the depositor.

It should be taken into account that in order to receive insurance compensation, the depositor can contact the agent bank at any time convenient for him during the year.

If depositors have the opportunity, they should not rush to receive insurance compensation on the very first day – there may be a long queue at the agent bank.

15) In what time frame does the Fund pay insurance payments to depositors?

The process of paying compensation for insured savings begins no later than 14 days from the date of the occurrence of the insured event, unless another period is determined by the Fund.

In this case, the payment of insurance compensation to the depositor is made by the Fund’s agent bank no later than 3 (three) business days from the date of the depositor’s submission of the application and the necessary documents confirming the right to pay insurance compensation to the depositor.

16) If a depositor has deposits and savings in several liquidated credit institutions, in what amount is he entitled to receive insurance compensation?

In the event of liquidation and the occurrence of an insured event in several credit institutions in which the depositor has deposit and/or savings accounts, the amount of compensation to the depositor is calculated separately for each credit institution and is paid in the amount established by law.

17) For which savings of individuals is compensation not paid?

In the event of an insured event, compensation is not paid for the following deposits and savings:

— deposits and savings obtained by criminal means or savings seized by the court;

— deposits and savings which, according to the conclusion of the National Bank of Tajikistan, contributed to the deterioration of the financial position of the credit institution;

— deposits and savings of certain legally related (affiliated) persons of the credit institution, as well as persons who were considered as such during the last year prior to the liquidation of the credit institution;

— deposits and savings of partners of the audit firm who were involved as auditors of the credit institution in the calendar year preceding the date of occurrence of the insured event;

— deposits and savings of persons owning more than five percent of the shares of the credit institution on a beneficial basis;

— deposits and savings placed in foreign branches of the credit institution;

— deposits and savings in the amount of any outstanding debt of the depositor to the credit institution;

— deposits and savings in the amount of less than 10 somoni.

18) If the depositor is unable to personally receive the amount of compensation for his deposits and savings (for example, in cases of illness, incapacity or stay abroad), how can he receive the insured amount?

The insured amount of compensation for deposits and savings can be paid to another person under a power of attorney issued in accordance with the current legislation of the Republic of Tajikistan.In this case, to receive compensation, the depositor’s representative must contact the agent bank with an identity document (passport or other document), a written application in the form established by the Fund, as well as a power of attorney issued in accordance with the current legislation.

19) How are funds reimbursed if the deposit and/or savings belong to a minor?

Compensation for deposits and savings that belong to a minor may be paid to other persons (parents, guardians, trustees, etc.) upon submission of relevant documents drawn up in accordance with the current legislation of the Republic of Tajikistan.

20) Who has the right to receive compensation for deposits and savings after the death of the depositor?

The right to receive compensation for deposits and savings is granted to heirs upon the availability of inheritance documents issued in accordance with the current legislation of the Republic of Tajikistan.

21) How will the amount of insurance compensation for deposits and savings kept in a joint deposit and/or savings account in a credit institution be calculated?

Deposits and savings kept in a joint account in a credit institution are considered as one deposit and savings, and the insurance compensation is paid to the owners of the deposit and savings account in equal proportions or proportions agreed upon between them. If the owner of a joint deposit and savings account has another deposit and savings account in a credit institution, the amount of the depositor’s share of the joint deposit and savings is combined with the amount of the other deposit and savings account and is considered as one deposit and savings

22) For what period of time can depositors apply to the Fund and the agent bank for compensation?

The depositor or his representative has the right, in the manner established by the Fund, to apply to the agent bank or to the Fund for insurance compensation within one year from the date of the occurrence of the insured event.

 23) What should the depositor do to receive compensation if the period for receiving insurance compensation has expired?

In accordance with the Law of the Republic of Tajikistan “On Insurance of Deposits and Savings”, the depositor or his representative applies to the Fund with an application in the form established by the Fund to extend the period for receiving insurance compensation. At the depositor’s request, the Fund may extend the depositor’s application period for receiving compensation under the following circumstances:

— if the depositor suffers from a physical or mental illness and cannot apply for insurance compensation in a timely manner;

— in emergency situations, as well as when the depositor is outside the country, on military service, in places of imprisonment, as well as for reasons related to the acquisition or opening of an inheritance that do not allow the depositor to apply for insurance compensation in a timely manner. If the term has been extended, the Fund pays the insurance compensation to the depositor within five days after receiving the application for compensation in accordance with the extended term. In other cases not provided for by law, the amount of deposits and savings of depositors is paid by a special administrator (liquidator) through the sale of assets of the liquidated credit institution in the established manner.

24) What documents must a depositor submit to receive compensation for deposits and savings?

To receive compensation for deposits and savings, a depositor must submit to the agent bank an identity document (passport or other document) and a written application in the form established by the Fund.

25) Where can a depositor get information about the deposit and savings insurance system?

Depositors can contact the credit institution where they intend to place their deposits and savings, or call (+992) 44 600-66-00, 44 600-32-45 to the Deposit and Savings Insurance Fund of Tajikistan or visit the Fund’s web page at: www.idif.tj.