Announcement of a new procedure for payment of warranty compensation

With this notice, the Bank informs its individual clients with whom a bank account and (or) bank deposit agreement has been concluded (hereinafter referred to as depositors), about the introduction of a new procedure for payment of guarantee compensation in the event that a bank participating in the deposit guarantee system is deprived of a license to conduct all banking operations.

The new procedure for payment of guarantee compensation applies to depositors:

(1) with whom the Bank entered into bank account and (or) bank deposit agreements after April 30, 2021, and

(2) for which the validity period of previously concluded bank account and (or) bank deposit agreements was extended from May 1, 2021 for a new period.

The new procedure for payment of guarantee compensation provides for two ways for depositors to receive guarantee compensation: (1) in the agent bank and (2) in electronic form through the electronic payment portal of Kazakhstan Deposit Guarantee Fund JSC (hereinafter referred to as KDGF) or the “electronic government” web portal.

The Fund will inform depositors about the start date of payment of guarantee compensation, indicating the list of agent banks, the period and places of payment, within thirty-five working days from the date of deprivation of the bank’s license to conduct all banking operations.

If depositors do not apply for guaranteed compensation after one year from the start date of payment, then the Fund will transfer the unclaimed amounts to their accounts in the Unified Accumulative Pension Fund as voluntary pension contributions.

The new procedure for paying guarantee compensation will apply to payments of guarantee compensation on deposits of banks deprived of a license to conduct all banking operations after May 1, 2021, as well as banks for whose deposits guarantee compensation is already being paid, and in respect of which the deadline for payment of guarantee compensation is set until May 1, 2022.

In particular, depositors of Qazaq Banki JSC have the right to apply for guarantee compensation to the branches of Subsidiary VTB Bank JSC (Kazakhstan) until May 1, 2022.

The maximum amount of warranty compensation payable is:

• 20 million tenge on savings deposits in national currency;
• 10 million tenge on cards, accounts and other deposits in national currency;
• 5 million tenge on cards, accounts and deposits in foreign currency (in equivalent at the exchange rate established on the date of deprivation of the bank’s license).

Depositors can obtain additional information on deposit guarantee issues, including the procedure for receiving guarantee compensation, from the Bank’s specialists or directly from KDGD by calling the call center -1460.