Rules On Deposit Insurance
Extracts from the Federal law „On insurance of individual deposits opened with the banks of the Russian Federation“.
1. Deposits insured
In accordance with the Federal law „On insurance of individual deposits opened with the banks of the Russian Federation“ (hereinafter „The Federal law“) funds in Russian rubles and hard currency deposited by individuals in banks on the basis of the deposit or account agreement, including interests accrued are insured.
Funds not insured:
- Funds deposited in accounts of individuals who are individual entrepreneurs and involved in business without establishing a juridical person, and if these accounts have been opened in connection with that business;
- Funds deposited in accounts payable to bearer, including certified by saving certificates and (or) a saving deposit payable to bearer;
- Funds deposited by individuals in banks for trust management;
- Deposits opened with branches of the Russian banks outside the territory of the Russian Federation.
2. Insured accident
The right of the depositor to compensation under his deposits arises on the occurrence of the insured accident.
Insurance accident cases are as follows:
- recall (cancellation) of the license of the Central bank of Russia for conducting banking operations;
- moratorium action implemented by the Bank of Russia for satisfaction of demands of the bank’s creditors.
3. Amount of compensation
Compensation under deposits is paid to depositor in the amount of 100% of total deposits opened with the bank, but no more than 100 000 Russian rubles.
If the depositor has several accounts with one bank and total commitments of the bank to him do not exceed 100 000 Russian rubles, compensation is paid pro the amount of each account.
In case the deposit has been opened in hard currency, the compensation amount under the deposit is calculated in rubles by the rate fixed by the Central bank of Russia on the insured accident day.
Compensation is paid in Russian rubles.
If the bank was a depositor’s creditor, the compensation amount is calculated basing on the difference between the bank’s commitments to depositor and counter commitments of the latter to the bank.
4. Procedure of the depositor’s application on compensation
For compensation under deposits a depositor (his representative) has the right to apply to the state corporation „Agency on deposit insurance“ (hereinafter „The Agency“) or to the agent-bank in case that bank has been called to pay compensation. Such right can be realized by a depositor from the insurance accident day up to the day of the discharge of bankruptcy, and in case of the moratorium action for meeting the depositors’ demands — up to the completion of the moratorium action.
When applying the Agency (agent-bank) for compensation under the deposits the Depositor presents:
- an application in form specified by the Agency;
- identification document, details of which are indicated in the register of the bank’s depositor.
The representative of the depositor alongside with the above-mentioned documents submits the notary certified power of attorney certifying the right of the representative to apply for compensation.
The mentioned documents are submitted by the depositor (his representative) by mail, dispatched or delivered directly to the authorized official to consider the documents.
5. Procedure of compensation
Compensation is paid by the Agency in accordance with the register of the bank’ s commitments to the Depositor within 3 days since the day the Depositor submitted the required documents, but no earlier than 14 days since the insured accident day.
At the moment of presenting the required documents the Depositor is given an extract from the register of the Bank’s commitments to Depositor with indication of the compensation amount.
The Agency publishes the notice about the place, time, form and procedure of acceptance of depositors’ applications in the bulletin of the Bank of Russia, as well as in the printing agency where the bank is located.
Compensation payment is effected by the Depositor’s application either by cash or by banking transfer to the account indicated by the Depositor.
Acceptance of depositors’ applications and other required documents on compensation payments under deposits can also be effected by the Agency via agent-banks acting on behalf and at the expense of the Agency.
6. The right of the depositor to demand compensation of the outstanding amount exceeding the amount compensated by the Agency.
The depositor who has received the compensation from the Agency has the right to demand compensation of the outstanding amount in accordance with the law in force.
