Dhaka: Bangladesh Bank on Tuesday introduced software, named ‘Information for Deposit Insurance Premium Assessment (IDIPA)’, to digitise the accounts of deposit insurance trust fund including premium collection.

Bangladesh Bank (BB) governor Atiur Rahman launched the IDIPA software at a function at Jahangir Alam Conference Hall of Bangladesh Bank in the city’s Motijheel.

With the help of this newly introduced software, every deposit insurance calculation along with premium assessment details will be done automatically instead of manual procedure.

Speaking on the occasion, the Bangladesh Bank governor said it is now possible to provide safety to the small depositors while receiving the assessed premium of deposit insurance under the ‘Deposit Insurance Act 2000’.

“It is the responsibility of the central bank to provide financial safety to the small depositors,” he added.

Citing that the volume of deposit insurance trust fund has reached Tk 3,661 crore, Atiur said banks collect deposit insurance premium on half-yearly basis and the premium percentage for banks is set considering risk. Thus the problem banks have to pay 0.10% premium, early warning banks 0.09 percent and other banks 0.08%.

The trust fund money is invested through five or ten year treasury bills and short term Repo, he said.

The governor mentioned that the Bangladesh Bank has proposed the Finance Ministry to bring changes to the ‘Deposit Insurance Act 2000’ for increasing deposit insurance to Tk 2 lakh instead of Tk 1 lakh and rename the Act as ‘Deposit Safety’ law. Under the proposed changes, the deposits will have 93% coverage instead of 85%.

Bangladesh Bank deputy governors SK Sur Chowdhury, Abu Hena Mohammad Razi Hasan and Naznin Sultana were present at the programme.