Mon, September 27, 2021

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Bank deposit protection cut to THB1 million from August 11


Thailand’s Deposit Protection Agency (DPA) said on Wednesday that from August 11 onwards, it will only provide protection for 1 million baht per account holder instead of 5 million baht.

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“The new rate will cover 82.07 million account holders at 35 financial institutes, equivalent to 98.03 per cent of all account holders in the banking system,” DPA director Songphol Chevapanyaroj said.

As of May 31, DPA had 83.72 million account holders under its protection, up by 1.62 per cent or 1.33 million accounts compared to the end of last year.

“Of the new account holders, 97 per cent have less than 1 million baht in their accounts. Deposits under DPA’s protection add up to 15.28 trillion baht, up by 2.33 per cent or 347.9 billion baht from the end of 2020,” he added.

DPA offers protection to both Thai and foreign individuals and juristic persons who hold accounts in the Thai currency in any of 35 financial institutions. The institutions covered include 18 commercial banks, 12 foreign banks with branches in Thailand, two finance companies and three credit foncier firms. Deposits covered include current account, savings account, fixed deposit, deposit card and deposit receipt.

“Protection will only be provided to accounts in the baht currency. In case a financial institution gets its licence revoked, the account holder will get their money back within the sum covered within 30 days,” Songphol said.

Published : August 04, 2021

By : THE NATION