The Ministry of Finance has drafted the Deposit Protection Ordinance 2025, introducing a new provision that ensures depositors receive an immediate compensation of up to 2 lakh taka if a bank or financial institution goes bankrupt. Previously, this amount was capped at 1 lakh taka.

The draft ordinance has been published online for public feedback, and opinions can be submitted via ds.cb@fid.gov.bd, though no deadline has been set for submissions.

Once enacted, this ordinance will guarantee that depositors receive an instant refund of up to 2 lakh taka, with any remaining balance to be recovered through liquidation. This protection primarily applies to individual deposits. The draft also outlines the formation of a Deposit Protection Fund by Bangladesh Bank, along with the establishment of a Deposit Protection Authority to oversee its implementation.