FAQs

What Is The Deposit Protection Scheme?

The deposit protection scheme is a system that protects depositors by protecting their deposits in the event that their bank or specialized deposit taking institution (SDI) becomes insolvent, their licence is withdrawn by the Bank of Ghana and a receiver is appointed.

What Is The Objective Of The Scheme?

The Scheme seeks to promote trust and confidence in the financial system by protecting the small saver from the loss of his deposits. The Scheme also seeks to establish a safe, sound and efficient financial system in Ghana.

What Is The Ghana Deposit Protection Corporation?

The Ghana Deposit Protection Corporation (GDPC) is a statutory body set up by the Ghana Deposit Protection Act (2016), Act 931, as amended by the Amendment Act (2018), Act 968 (hereinafter GDP Act)  to manage the Scheme efficiently and effectively in line with the law and international best practices. The Corporation is headed by a governing board.

Who Benefits From The Scheme?

Anybody who deposits money into any of the member institutions i.e. banks, or any SDI (Exceptions apply).

Are My Deposits Covered?

All deposits with a bank or specialized deposit taking institution are protected, except the following:

  • A deposit for which a depositor has not been identified;
  • A deposit that is frozen in compliance with an order of a court;
  • A deposit that belongs to:
    • a director or key management personnel;
    • a director or key management personnel who has worked with the bank or Specialized Deposit-Taking Institution for at least three years preceding the occurrence of the insured event.
    • an accounting or audit firm, a partner or manager of that accounting or audit firm who is in charge of performing the external audit of the financial statements of the bank or specialized deposit taking institution for at least three years before liquidation of the bank or specialized deposit taking institution;
  • A deposit that is used as collateral for a loan or other obligation with the bank or Specialized Deposit-Taking Institution.
  • A deposit held by a financial institution, pension fund, retirement fund, insurance company, collective investment undertaking, local government, central government and administrative authority;
  • Deposits held in a foreign branch of a bank or specialized deposit taking institution incorporated in Ghana, and a subsidiary of that bank or specialized deposit taking institution operating in a foreign country.

Is My E-money (Mobile Money) Protected?

Yes e-money is protected, just as other deposits with banks and Specialized Deposit-Taking Institution that are covered by the Corporation. 

How Will I Know An Insured Event Has Occurred?

A maximum of six days after a bank or SDI goes down and the Bank of Ghana withdraws their license, GDPC will announce procedures for payment of compensation using all media platforms available and also the Corporation’s website.

What Are The Processes To Make A Claim?

The process for making claims will be published in the media and on the Corporation’s website when the Bank of Ghana withdraws the license of a bank or SDI. At a minimum, the following processes will apply:

  1. Attach evidence of ownership of the insured accounts as per the announcement of the modalities for payment published by the Corporation;
  2. Present the claim at a place and time announced by GDPC;
  3. Submit the claim within 30 days of the first announcement on pay-out by GDPC;
  4. Where one is unable to make a claim within a period of 30 days after the announcement, an insured depositor shall make the claim at the registered office of GDPC within five (5) years after expiry of the 30 days.

When Will I Be Paid?

The Corporation shall commence the process of payment of compensation of insured deposits on the date of the first publication of the modalities for payment.

How Long Is The Payment Period?

The process for payment of compensation shall last for a period of thirty days after the announcement.

How Will I Be Paid?

The Corporation may pay an insured depositor in a single payment or in a series of payments over the thirty day period.

What Happens If A Claim Is Not Made In Time?

  1. An insured depositor who does not make a claim within the five (5) years shall forfeit the right to that claim to the Ghana Deposit Protection Corporation.
  2. However, if the insured deposit belongs to a deceased individual, his/her personal representative or next of kin may make the claim any time after the five years.

What If The Account Is Subject To A Charge?

Where an insured deposit is the subject of a charge to a third party, the Corporation shall pay out compensation due in respect of that account to the secured party in accordance with the Borrowers and Lenders Act or under the orders of a court.

What Compensation Amounts Are Paid To Depositors / Claimants?

The maximum compensation payable to a depositor of a bank shall be GHC 6,250.00; and the maximum compensation payable to a depositor of a Specialized Deposit-Taking Institution, shall be GHC 1,250.00. However, where the compensation paid is less than the deposit standing to the credit of the claimant, the claimant may recover the difference from the liquidator or receiver of the bank or Specialized Deposit-Taking Institution.

Joint Accounts

Where an account is held jointly by depositors and the bank or Specialized Deposit-Taking Institution has not been notified of a contrary arrangement with respect to sharing of the monies in the account, the Corporation shall divide equally among the depositors the amount to be reimbursed them.

What is a pay-out?

A pay-out or reimbursement is the amount that the deposit insurer (GDPC) will
pay to an insured depositor, when the bank or Specialized Deposit Taking
Institution (SDI) of which the depositor is a customer, fails and the Bank of
Ghana revokes the licence and appoint a receiver. This is called an insured
event.

What do I have to do as an insured depositor to receive my compensation?

Immediately after the press conference GDPC shall publish the
modalities for reimbursement;
• On its website (www.gdpc.gov.gh)
• In at least two daily newspapers of national circulation
• Major radio and television stations of national circulation

Who will pay me?

The Ghana Deposit Protection Corporation (the Corporation) will make the payments, or it may use the services of a Pay-out Agent Bank (PAB).
The PAB may be a bank or SDI.

How will I be paid?

a) The Corporation shall pay an insured deposit in a single payment or in a series of payments. All payments will be done within a period of thirty
(30) calendar days after the announcement by GDPC of the commencement of a pay-out. If unable to claim in the 30 days you have up to five (5) years to claim.
b) Payment may be made by the following means:
I. Cash
II. Cheque
III. Bank transfer
IV. Telegraphic transfer
V. Mobile money
VI. Bankcards

What compensation amounts are paid to insured depositors / Claimants?

The maximum compensation payable to a depositor of a bank shall be GHC 6,250.00 and the maximum compensation payable to a depositor of a Specialized Deposit-Taking Institution shall be GHC 1,250.00. However, where the compensation paid is less than the deposit standing to the credit of the claimant, the claimant may claim the difference from the liquidator or Receiver of the bank or Specialized Deposit-Taking Institution.

 

What if I have two or more accounts?

The Corporation shall calculate the amount to be reimbursed by adding up the deposit accounts together with interest and deduct any deposits that are exempt and overdue loans.

What if my account is a trust account?

Where a depositor is a Trustee for the deposit account of a beneficiary, the Corporation shall make pay-outs to the beneficiary and not to the trustee. In determining the amount to be reimbursed to the beneficiary, the Corporation shall add other deposit accounts in the name of the beneficiary to the deposit accounts held in Trust for the beneficiary, and apply setoffs as specified in section 20 (2) of the Ghana Deposit Protection Act, 2016 Act (931).
Where there is more than one beneficiary, the Corporation shall reimburse each beneficiary of the trust account based on information relating to proportions of entitlement provided by the Trustee to the Bank or SDI.

Which categories of deposits are not insured under the scheme?

In line with section 13 of Act 931, as amended, the following categories of excluded deposits shall not be compensated during a pay-out:
a. A deposit for which a depositor has not been identified;
b. A deposit that is frozen in compliance with an order of a court;
c. A deposit that belongs to
i) A director or a key management personnel;
ii) A director or a key management personnel who has worked with the bank or specialized deposit-taking institution for at least three years preceding the occurrence of the insured event;
iii) An accounting or audit firm, a partner of that accounting or audit firm, a partner of that accounting or audit frim, and a manager of that accounting or audit firm who is in charge of performing the external audit of the financial statements of the bank or specialized deposit-taking institution for at least the three years preceding the occurrence of an insured event; or
iv) A deposit that is used as collateral for a loan or other obligation with the bank or specialized deposit taking institution.
d. A deposit held in a bank or specialized deposit-taking institution by a financial institution, pension fund, retirement fund, insurance company, collective investment undertaking, local government, central government and administrative authority; and
e. A deposit held in a foreign branch of a bank or a specialized deposit-taking institution incorporated in Ghana, and a subsidiary
of that bank or specialized deposit-taking institutions operating in a foreign country.

What must I do to get my deposits insured?

Nothing, all deposits of banks and SDIs licensed by Bank of Ghana are insured with the exception of deposits that fall within the exclusions listed under section 13 of Act 931 as amended.

As an insured depositor, what can I do to support a smooth pay-out process?

  1. Always ensure that your contact details with your bank / SDI are accurate and up-to-date.
  2. Get to know which type of deposits are covered by the Ghana Deposit Protection Scheme.
  3. Follow the advice/requests of the Corporation or Pay-out Agent Bank on the occurrence of an insured event.