Dcgf.org.np Website Review

निक्षेप तथा कर्जा सुरक्षण काेष Financial stability is one of the topical issues that has been accorded increased attention from central bank, government, market players, borrowers and deposit insurer. As a deposit insurer, Deposit and Credit Guarantee Fund(DCGF) has started the deposit guarantee safety net and has been implemented in more than 120 countries around the world. It is a system that protects depositors against the loss of their guaranteed deposits placed with banks and financial institutions (BFIs) in the case of unlikely event of the BFIs failure. DCGF has given the statutory responsibility to perform both the deposit guarantee and credit guarantee function through it's own  Deposit and Credit Guarantee Fund  Act, 2073. In the DCGF Board there has been representation of six from the government and one from Nepal Rastra Bank. Obviously, DCGF is a government sponsored and administered separate entity. Generally, deposit guarantee system is a government sponsored scheme. In Nepal, deposit guarantee scheme is confined to BFIs namely (i) commercial banks, (ii) development banks, (iii) finance companies and (iv) micro credit development banks. DCGF has fixed the premium rate of 0.16 % on guaranteed deposit to all BFIs member institutions. The coverage of deposit guarantee is limited to Rs 3,00,000 per natural individual depositors per member institution The Nepal Government has implemented a mandatory deposit guarantee scheme to 'B' clas* Development Bank, 'C' clas* Finance Companies and has been providing credit guarantee subsidy on a certain level on (i) micro finance and deprived sector credit; (ii) small and medium Rastra Bank and to compensate the loss to the depositors in case of legitimate bankruptcy of the member institution. deprived and micro-finance sector and to compensate the loss under a risk sharing modality as per the concerned regulation in case of the proven death and permanently infertile of  livestock  and indisputable default of other loans.