Deposit Protection Fund Urges Public to Use Only Regulated Financial Institutions

The Deposit Protection Fund (DPF) of Uganda has issued a strong warning to the public, advising them to conduct their banking activities strictly with institutions regulated by the Bank of Uganda and registered with the DPF to safeguard their hard-earned money.

Speaking during a media engagement in Kabale for the Kigezi Sub-region, DPF Communications Director Patrick Onen Ezaga emphasized that uninsured and unregulated financial entities pose significant risks to savers if they collapse.

“The public must avoid keeping their money in financial institutions that are not properly regulated because the Deposit Protection Fund of Uganda protects banking institutions that are regulated by the Bank of Uganda,” Mr Ezaga stated.

He also stressed the critical importance of keeping account information updated. According to Mr Ezaga, some depositors who held accounts in previously closed institutions have yet to receive their payouts because their contact details and banking information were outdated at the time of closure.

The DPF currently guarantees up to Shs10 million per depositor per institution, a threshold that officials say covers the vast majority of ordinary savers. For accounts holding higher balances, any excess is paid out from the proceeds of the institution’s liquidation process. Furthermore, Mr Ezaga revealed that active consultations are underway to review and potentially increase the current Shs10 million payout ceiling following numerous public appeals.

Highlighting the role of the media as the eyes and ears of society, Mr Ezaga urged journalists to help disseminate accurate financial information and guide the public to use established government channels to verify rumors regarding the health of financial institutions rather than panicking.

The DPF currently has 42 registered institutions, comprising 21 commercial banks, eight credit institutions, two microfinance deposit-taking institutions, and 11 savings and credit cooperative organizations (SACCOs).

Read the original story on the Daily Monitor.