Some 85% of the total deposit accounts with banks in the country are covered by insurance.

Under the coverage, most of the small depositors would get their money back up to Tk1,00,000 in case their respective banks face collapse.

The amount will be paid back from the Deposit Insurance Trust Fund of Bangladesh Bank, a function at the central bank headquarters in Dhaka was told. The Fund size now stands at Tk3,661 crore.

Bangladesh Bank has launched a software yesterday titled “Information for Deposit Insurance Premium Assessment” for maintenance of insurance trust fund.

The fund has been formed through taking premium from the commercial banks.

Insurance premium on deposits is collected from the banks in every six months.

The rate of premium is fixed, considering the risk analysis of the respective banks.

The premium rate has set at 0.10% for the troubled banks, 0.09% for early warned banks and 0.08% for other banks.

Bangladesh Bank invested the trust fund in treasury bills and repo sector.

The central bank recently proposed the government to bring the deposits of the non-bank financial institutions under insurance protection.

Inaugurating the software, Bangladesh Bank Governor Atiur Rahman said it would help define the amount of insurance premium on the total deposits of respective banks directly.

The certain amount of premium will be transferred to the trust fund from the account of banks that maintained into the Bangladesh Bank headquarters. Earlier, calculation of premium on insurable deposits was held manually.