The Ugandan government has announced a significant increase in the Deposit Protection Fund (DPF) from UGX 400 billion to UGX 1.3 trillion. The DPF is a government agency responsible for offering deposit insurance to customers of deposit-taking institutions that are licensed by the Bank of Uganda. This decision to expand the DPF’s coverage is a response to the growing number of individuals opening bank accounts and the increasing need for protection of their deposits.
As of now, each bank account holder in Uganda is entitled to DPF insurance coverage of up to UGX 10 million, regardless of the amount they have deposited. It is possible that this coverage amount may be further increased in the future, with the aim of enhancing overall financial stability within the country.
Furthermore, the DPF is also concerned about the potential impact of these changes on the regional balance within the East African Community (EAC). Efforts are being made to ensure that the expansion of the DPF does not destabilize the financial dynamics within the EAC.
In light of this development, customers who face financial difficulties or mishaps are encouraged to promptly report their issues to the Central Bank. Such reports will be subject to investigation and necessary actions to safeguard the interests of depositors. The expansion of the Deposit Protection Fund is a move to enhance the financial security of Ugandan depositors and promote confidence in the country’s banking system.