Central Bank proposed insurance limit increase for long-term deposits and escrow

In her annual report to the State Duma, Bank of Russia chairman Elvira Nabiullina proposed increasing insurance compensation for depositors on long-term deposits and escrow accounts.

“Regarding depositors’ long-term money, increase the insurance compensation limit from the current 1.4 million to 2 million rubles, and if the deposit is issued with a long-term irrevocable certificate, then to 2.8 million rubles,” said the head of the Central Bank.

The regulator also proposes increasing the insurance compensation for the escrow account from 10 to 20 million rubles due to rising housing prices. Thus, at the end of 2023, the gap between primary and secondary housing prices was 44%, “with the historical norm being around 10%,” noted Elvira Nabiullina.

Currently, bank deposit insurance amounts to no more than 1.4 million rubles per depositor (before 2015, it was 700 thousand rubles).

Let us remind you that when the license was revoked from Qiwi Bank, the volume of funds from legal entities alone amounted to more than 18.4 billion rubles. The Deposit Insurance Agency will be able to pay 4.3 billion rubles—300 individuals, 11,000 individual entrepreneurs, and 9,000 companies will receive insurance.

Author: Elina Akhmetova