The government has increased bank deposit insurance limit from the current Shs. 3million to Shs.10million. This is the amount of money that is put aside to cater for misfortunes like the closure of a bank, as a guarantee that depositors can be refunded to that limit. This money is kept by the Deposit Protection Fund, an independent agency created under the Financial Institutions Act, 2004. The Fund, previously under Bank of Uganda, was operationalized in 2017 after the enactment of the Public Finance Management Act, 2016. The increment in the insurance limit means that if a bank collapses and you…
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