Tashkent, Uzbekistan (UzDaily.com) — On 18 February, President of Uzbekistan Shavkat Mirziyoyev signed the newly revised Law on Deposit Protection Guarantees in Banks.

Under this law, the Deposit Guarantee Fund’s obligations will be transferred to a newly established body—the Deposit Guarantee Agency (DGA)—which will be responsible for compensating depositors in the event of a bank’s license revocation by the Central Bank of Uzbekistan.

The maximum compensation per depositor across all accounts in a single bank is set at 200 million soums. Compensation for foreign currency deposits will be paid in the national currency at the exchange rate of the Central Bank on the date of the insured event.

In cases where a bank undergoes reorganization through a merger or acquisition, depositors will be eligible for additional compensation. They will have six months from the announcement of the reorganization to withdraw in advance any portion of their deposits exceeding the guaranteed amount, as well as any accrued but unpaid interest.

Starting from 1 January 2025, the DGA must ensure that at least 75% of depositors receive compensation within 20 business days. From 1 January 2026, this period will be reduced to 15 days, and from 2027 onward, to just 7 business days.

In addition to individual deposits, the guarantees will extend to accounts held by sole proprietors and legal entities. However, the mechanism will not cover accounts belonging to state-owned enterprises, other banks, or financial institutions.

The DGA’s governance will be overseen by a Supervisory Board consisting of five members, chaired by the Governor of the Central Bank. The board will also include the Deputy Minister of Economy and Finance, a representative from the Cabinet of Ministers, a delegate from the Association of Banks of Uzbekistan, and an independent member appointed by the Central Bank.

The DGA’s activities will be financed through one-time and regular contributions from banks. Additionally, from May 2025, the agency will have the authority, subject to Central Bank approval, to introduce special levies on banks, which may be collected no more than once per year. These funds will be used to replenish the deposit guarantee fund in case of a shortfall, repay loans taken to cover compensation payments or bank rehabilitation costs, and restore the target size of the fund after its use.