FAQs

The Deposit Protection Scheme is a financial insurance scheme that protects SMALL DEPOSITORS in the event of the occurrence of an INSURED EVENT by the payment of compensation to them.

o WHAT IS AN INSURED EVENT?

An insured event is the failure/liquidation of a Bank or Specialized Deposit-Taking Institution, or the revocation of the license of a Bank or Specialized Deposit-Taking Institution by the Bank of Ghana.

o WHO IS A SMALL DEPOSITOR?

 A small depositor is a person who has a level of account determined by the Board of the Corporation to be a small deposit. 

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.

The Ghana Deposit Protection Corporation (the Corporation or GDPC) is a corporate body set up by law to manage the Scheme efficiently and effectively in line with the law and international best practice. It is a corporate legal entity with a governing Board and members of staff.

The small depositor who has accounts/deposits with a bank or Specialized Deposit-Taking Institution benefits from the Scheme. When an insured event occurs, the small depositor is paid the stated compensation when they make a claim.

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.

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

At least six days after the occurrence of an insured event, the Corporation shall publish the modalities for the payment of compensation in at least two daily newspapers of national circulation and on television and radio.

An insured depositor or his representative in submitting a claim shall:

- attach evidence of ownership of the insured accounts

- present the claim at the venue and time announced by the Corporation

- submit the claim within thirty days of the announcement by the Corporation

- where he/she is unable to claim the compensation within the thirty days, make the claim at the registered office of the Corporation any time within five years after the expiry of the 30 days. 

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.

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

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

The Corporation will make the payments or it may use the services of a payout agent, a bank or Specialized Deposit-Taking Institution. 

An insured depositor who does not make a claim after the five years shall forfeit the right to that claim to the Corporation. If however the claim is by a personal representative of a deceased person or next friend, the claimant does not stand the risk of forfeiture. 

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.

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.

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.

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.

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

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.

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

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.

 

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.

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.

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.

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.

  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.

Annex 1 - Scenarios

INDIVIDUAL ACCOUNTS

An account opened in a name of a natural person

Scenario 1:

John Mensah has a savings account (Account A) with BC Bank with a balance of ¢5,000.00. For pay-out the amount to be paid to John Mensah is ¢5,000.00 as shown below.

Scenario 2:

John Mensah has a savings account (Account A) with BC Bank with a balance of ¢10,000.00. For pay-out the amount to be paid to John Mensah is ¢6250.00 as shown below.

JOINT ACCOUNTS

An account opened and shared by two or more persons. Where the combination of co-owners refers to the same individuals, accounts held jointly by them will be added together and insured up to the maximum of ¢6,250.00 for Banks and ¢1,250.00 for SDIs. Where an account is jointly held by depositors and the Bank or SDI has not been notified of the existence of any other contractual agreement between the depositors with respect to sharing of the moneys in the account, the Corporation shall divide equally among the depositors, the amount to be reimbursed.

Scenario 3:

The following accounts are held:

The records of the failed institution showed that S. Mensah and Sophia Mensah are the same person: J. Mensah and John Mensah refer to the same person. The following would apply in the event of a pay-out:

TRUST ACCOUNTS

An account opened by an individual, company, association or a group for the benefit of another party(beneficiary). Where a depositor is a trustee for the deposit account of a beneficiary, the Corporation shall in determining the amount to be reimbursed to that beneficiary, add other deposit accounts in the name of the beneficiary to the deposit accounts held in trust. Deposit protection coverage recognizes the beneficiaries of a trust as a depositor for the purpose of deposit protection entitlement. As such, each beneficiary of a trust is insured up to ¢6,250.00 for bank customers and ¢1,250.00 for SDI customers. The Corporation shall reimburse the beneficiary of a trust account based on information provided by the trustee to the bank or SDI.

Trust Relationships

  1. Settlor – Person who creates the Trust/ or a person whose property was used to create the Trust
  2. Trustee – Administrator of the Trust, may be a person or an institution
  3. Beneficiary – Person ultimately entitled to the Trust property

 

Scenario 4:

Sam Mensah is the trustee of a trust account at BC Bank for the benefit of George Mensah and John Mensah. ¢16,000.00 was placed in Account A1. The account is in the name of Sam Mensah on behalf of George Mensah and John Mensah. George Mensah and John Mensah have equal interest in the account. Additionally, George Mensah has a current account with a balance of ¢2,500.00 (Account B2): and John Mensah has a savings account with a balance of ¢9,000.00 (Account C3) at the same bank:

The following would apply:

Scenario 5:

James Mensah is a trustee of two (2) trust accounts at BC Bank for the benefit of George Mensah and John Mensah. He placed ¢6,000.00 in a savings account (Account A1) and ¢4,000.00 in (Account B2). Both accounts are in the name of James Mensah, for the benefit of George Mensah and John Mensah. George Mensah and John Mensah have equal interest in the account.  The following would apply in a pay-out scenario:

Corporate Accounts

A company is a type of business structure that is a legal entity in its own right. The owners are the shareholders and the company can enter into contracts, be sued (or sue), buy and sell assets, own property, hire employees or borrow money.

Deposits of companies are covered separately from the deposits of their owners.

 

Scenario 6:

PKL Company Limited, owned by John Peters, George Wisdom and Graham Charles as shareholders has a current account (Account C1) with a balance of ¢5,000.00. It also has a savings account (Account S1) with a balance of ¢2,000.00. The balance on the Overdue loan account (Account L1) stands at ¢3,000.00. The following will apply in a pay-out.

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