Deposit Insurance System in Kazakhstan
The Kazakhstan Deposit Insurance Fund (KDIF) JSC had been established in 1999 to administer the deposit insurance system. The Fund is a non-profit organization. The founder and sole shareholder of the Fund is the National Bank of the Republic of Kazakhstan.
The Fund, by accumulating quarterly bank payments has built a reserve for deposit insurance payment in the event of forced bank liquidation.
The legal framework of the deposit insurance system, as well as rights and obligations of the system participants, is determined by the Law of the Republic of Kazakhstan "On mandatory insurance of the deposits placed in the second-tier banks of the Republic of Kazakhstan".
What deposits shall be insured?
The object of the insurance is the deposits of the natural persons (including the one of individual entrepreneurs) in the national and foreign currencies in the bank accounts certified by the bank account or bank deposit agreements.
The Fund has coverage for non-time, time and savings deposits, demand deposits, conditional deposits, as well as the money on current accounts and payment cards of the banks participating in the mandatory deposit insurance system.
In the event of forced liquidation of the bank, the owner of the bank account/deposit receives insurance payment thereon it within the maximum insurance payment amount.
What the Fund insurance does NOT cover?
The metal accounts of natural persons, money and valuables placed into the safe deposit boxes, deposit certificates, as well as deposits placed in Islamic banks are not insured by the Fund.
What is the insurance payment?
In accordance with the Law of the Republic of Kazakhstan" On mandatory insurance of the deposits placed in the second-tier banks of the Republic of Kazakhstan", the insurance payment is the amount of money payable to the depositor by the Fund under the deposit insured.
What is the maximum deposit insurance amount in the national currency tenge and in foreign currency?
The insurance amount for all the deposits (bank accounts) for one depositor in each of the banks is:
up to 15 million tenge inclusive for the savings deposits in national currency,
up to 10 million tenge inclusive for the deposits in national currency,
up to 5 million tenge inclusive for the deposits in foreign currency (in equivalent at the market exchange rate established on the date of entry into force of the court decision on the bank's forced liquidation).
If the bank deposit agreement provides for capitalization, its interest is added to the principal amount of the deposit. And in this case, the insurance applies to the entire amount of the deposit within the maximum insurance amount.
If the depositor has two or more deposits placed with one bank simultaneously in both tenge and foreign currency, the aggregate insurance payment is paid up to 15 million tenge inclusive.
If your deposit amount exceeds the insurance payment amount, the Fund will pay within the maximum deposit insurance amount. The depositor shall have the right to receive the difference in excess of that amount from the liquidation commission of the liquidated bank in the order of priority established by the Law of the Republic of Kazakhstan "On the banks and banking activities in the Republic of Kazakhstan".
Which banks participate in the deposit insurance system?
In accordance with the law of the Republic of Kazakhstan, each bank that had a license from the National Bank of the Republic of Kazakhstan to deposit taking, opening and maintaining bank accounts of the natural persons, on a mandatory basis becomes the participant of the deposit insurance system, which means that the deposit placed in such bank is protected by the Fund.
A current list of banks participating in the mandatory deposit insurance system is available on the Fund’s website: www.kdif.kz.
Are the deposits placed in the several banks insured to the same extent?
Yes, if you place deposits into the several banks that are the members of the mandatory deposit insurance system, then your deposits are insured separately in each of those banks within the maximum insurance payment amount.
How will the insurance under deposits placed in the two different banks be paid if the two banks merged?
In accordance with the Law of the Republic of Kazakhstan "On the banks and banking activities in the Republic of Kazakhstan", once the merging bank liabilities are transferred to the acquiring bank, the fulfillment of obligations before the depositors, including the maintenance of transferred bank accounts, is carried out by the acquiring bank as a result of banks merger.
The depositors or the natural persons should be of notice that the deposit insurance limits are set for one depositor in one bank, including the reorganized one as a result of the banks merger.
When merging two (or more) banks the clients having deposits in each of those banks should pay attention to the aggregate deposit amount in those banks. Once the merger is finalized, all the money deposits in the unified bank will be insured by the Fund up to the maximum deposit coverage amount in one bank. At the same time, the aggregate insurance payment for one depositor, as mentioned above shall not exceed the amount of 15 million tenge.
Is the deposit interest paid out?
From January 1, 2020, the deposit interest accrued on the date of the bank's license revocation is also covered by the Fund insurance within the maximum deposit insurance payment.
To pre-calculate the insurance payment amount, use a special calculator on the Fund website www.kdif.kz.
Contact information of the JSC "KDIF"
Website - www.kdif.kz/ru
Telegram chat - @kdif_ask
Call center - 1460 (toll free)
Last update: 03.11.2020