Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has extended deposit protection not only to individuals but also to business entities, including sole proprietors.

On 18 February, President Shavkat Mirziyoyev signed the Law “On Guarantees for the Protection of Bank Deposits,” significantly expanding depositors’ rights.

The Central Bank has outlined key changes introduced by the law.

One of the most notable updates is the establishment of a guaranteed deposit amount of 200 million soums per depositor in a single bank. This rule applies to new deposits placed after the law comes into effect.

However, all previously opened fixed-term and savings deposits will retain full guarantees regardless of their amount. Deposits under 200 million soums will be fully covered.

Another important change is the extension of the deposit guarantee system to entrepreneurs, including individual entrepreneurs, enhancing the protection of their funds.

The deposit guarantee system serves two main purposes: safeguarding depositors’ funds in case of a bank’s liquidation and encouraging banks to maintain financial stability and compete based on reliability rather than interest rates.

It is important to note that the 200 million soum limit does not restrict depositors from placing larger amounts in banks. The guarantee applies only in the event of a bank’s liquidation, ensuring that deposits remain secure.

Additionally, the compensation payout period has been significantly reduced. Previously, payments started after 83 days, but under the new law, they will commence within 20 working days and will eventually be reduced to 7 working days. This means that in the event of a bank failure, the Deposit Guarantee Agency is required to begin compensations within 20 working days, or even earlier under favorable conditions.

If a depositor is unable to claim their funds within the specified period, they can still do so at a later time by contacting the Agency.