DID Circular No. 01: Regarding Submission of Information for Deposit Insurance Premium Assessment

18 Magh 1430 DID Circular No. 01/2024

Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh Master Circular Regarding Submission of Deposit Insurance Premium Assessment Information and Premium Payment

Your attention is drawn to DID Circular No. 01, dated July 06, 2011, DID Circular No. 04, dated July 15, 2013, DID Circular Letter No. 01, dated December 23, 2020, DID Circular Letter No. 01, dated September 28, 2021, and DID Circular Letter No. 02, dated December 08, 2021, on the above subject.

To protect public confidence in the banking sector by protecting the deposits of small depositors in Bangladesh, to encourage savings, and to maintain discipline in this sector, the Deposit Insurance System has been in operation since 1984 to protect the stability of the overall financial sector. Currently, all scheduled banks operating in the country are compulsorily insured with the Deposit Insurance Trust Fund as per the 'Bank Deposit Insurance Act, 2000'. As per Section 5 of the said Act, all scheduled banks deposit premiums into the above fund at the time and in the manner prescribed by Bangladesh Bank.

For the purpose of premium calculation, deposit insurance premium assessment information is currently collected from all scheduled banks operating in Bangladesh every half-year according to a specific format. The collected information is verified by this department, and the amount of premium compulsorily payable by banks is determined by applying the prescribed premium rate. Now, to ensure the specificity of the deposit insurance premium assessment information to be submitted by banks, this Master Circular is being issued by consolidating the aforementioned circulars/circular letters issued by this department:

1. Submission of Deposit Insurance Premium Assessment Information: All scheduled banks must prepare information according to the attached form (Annexure-A) and the instructions described therein. Softcopy and hardcopy of all prepared information must be submitted simultaneously.

(a) Softcopy: All scheduled banks must log in using their respective User ID and Password applicable for their bank through the Information for Deposit Insurance Premium Assessment (IDIPA) Software displayed on the Bangladesh Bank website (www.bb.org.bd) and submit the information.

(b) Hardcopy: All information prepared according to the instructions must be sent to this department with the signature of the departmental head and the information preparer of the concerned bank.

2. Deadline for Information Submission: Scheduled banks must submit information within the deadlines mentioned below, based on the balance of accounts on the last working day of the January-June and July-December half-years:

Half-yearly Balance Basis	Deadline for Information Submission
January-June	December 31, Previous Year
July-December	June 30, Relevant Year

Bangladesh Bank (Central Bank of Bangladesh) Head Office Motijheel, Dhaka-1000. www.bb.org.bd Deposit Insurance Department

Date: 18 Magh 1430 01 February 2024

3. Penalty for Incorrect/Late Information Submission: (a) Penalty for providing incorrect information: If a statement containing intentionally incorrect information is submitted, a fine and related penalties will be imposed under the provisions of Section 109(2) of the 'Bank Company Act, 1991'.

(b) Penalty for late submission of information: If a statement is not submitted within the specified deadline, a fine will be imposed and collected at the prescribed rate under the provisions of Section 109(7) of the 'Bank Company Act, 1991'.

4. Premium Payment: Within 10 (ten) days of the issuance of a letter for premium payment from this department, all banks must deposit the prescribed premium into the Deposit Insurance Trust Fund account maintained in the Deposit Account Department of Bangladesh Bank Motijheel Office. If the last day for premium payment is a public holiday, the next first working day will be considered the last day.

5. Measures for Failure to Pay Premium: (a) If an insured bank fails to pay the premium, an equivalent amount will be debited from the current account of the concerned bank held at Bangladesh Bank and deposited into the Deposit Insurance Trust Fund, by virtue of the power described in Section 5(3) of the 'Bank Deposit Insurance Act, 2000'. In this case, penal interest at the bank rate will be imposed on the premium for the delayed period.

(b) If an insured bank fails to pay the premium multiple times, Bangladesh Bank, by virtue of the power described in Section 6 of the 'Bank Deposit Insurance Act, 2000', after providing an opportunity for a hearing to the concerned bank, will direct it to refrain from accepting deposits for the period mentioned in the notification by a notification in the official gazette.

6. Information Notification: Any fundamental change (temporary/permanent) in the regulatory compliance of banks, approved/instructed by various departments of Bangladesh Bank, which may affect the calculation of deposit insurance premium, must be timely informed to this department by the banks.

7. Effectiveness: This instruction will be effective from the time of submission of December 31, 2023-based information applicable for the January-June, 2024 half-year. Hereby, DID Circular No. 01, dated July 06, 2011, DID Circular No. 04, dated July 15, 2013, DID Circular Letter No. 01, dated December 23, 2020, DID Circular Letter No. 01, dated September 28, 2021, and DID Circular Letter No. 02, dated December 08, 2021 are repealed. For matters other than information submission and premium payment, previously issued DID Circular No. 02, dated October 02, 2012, DID Circular No. 03, dated October 17, 2012, and DID Circular Letter No. 01, dated November 02, 2014 will remain effective.

Yours faithfully (Md. Selim Ahmed) Director (DID) Phone: 55665001-6/20255 E-mail: mdsalim.ahmed@bb.org.bd

Annexure-A Information for Deposit Insurance Premium Assessment (IDIPA) Bank's Name .......................... Reference: Circular No.: .......................... Subject: Statement/Information regarding preparation of Deposit Insurance Premium for the half year January-June/July-December The information base position as of 31 December/30 June (Figure in Taka)

Total Demand and Time Liabilities:

1. Customer Deposit: a. Deposit from Domestic Banking Operation b. Deposit from Offshore Banking Unit
2. Inter-bank Deposit: a. Deposit from other banks b. Borrowing from other banks
3. Government Deposit: a. Government Deposit (Local) b. Government Deposit (Foreign)
4. Finance Companies' Deposit: a. Deposit and Borrowing from Public Finance Companies b. Deposit and Borrowing from Private Finance Companies
5. Amount of Loan/Investment against all sorts of Deposit:
6. Other Deposits/Liabilities (Break-up list enclosed): Total:

Details Customer Deposit Composition

Sl.	Customer Deposit	Number	Amount (Figure in Taka)
1.	1-100000/-
	Depositors' Number & respective amount:
2.	100001-200000/-
	Depositors' Number & respective amount:
3.	200001/- & above
	Depositors' Number & respective amount:
	Total:

Signature, Name & Seal of Departmental Head

Signature, Name & Seal of Authorized Officer

Notes: Total Demand and Time Liabilities (TDTL) Total of Demand Liabilities, Time Liabilities, Other Demand & Time Liabilities and Liabilities to Others are considered as TDTL. The aggregate balance of Customer Deposit, Inter-bank Deposit, Government Deposit, NBFI Deposit and Other Deposits/Liabilities should be reported in TDTL for the purpose of Deposit Insurance Premium Assessment. In this regard, following items of TDTL are mentioned here, which are generic in nature and applicable for both Conventional and Islamic Banking.

A. Demand Liabilities: Demand liabilities are customer deposits which are repayable on demand. The following accounts are usually considered as demand liabilities: (1) Demand Deposits (General) i) All Current Accounts ii) All Cash Credit Accounts (Credit Balances) iii) Credit Card (Credit Balance) iv) Demand Portion of Savings Bank Accounts as per the instruction of Bangladesh Bank. v) Matured Fixed Deposit Accounts (but Not Claimed yet) vi) Call Deposits Accounts (on Demand) vii) Unclaimed Deposit viii) Trust Cum Settlement Account ix) Interest/Profit Payable on Above Accounts. x) All other Deposits Payable on Demand e.g.

• Outstanding Bills
• Payment Orders
• Telegraphic Transfers & M.T.
• Outstanding Drafts
• Drafts payable Account
• Demand Drafts
• Hajj Deposits
• Bonus scheme Remittances Payable
• Bills Payable
• Certificates Payable
• Resident Foreign Currency Account (RFCD)
• Non Resident Foreign Currency Account (NFCD)
• Other Foreign Currency Deposit Account
• Convertible Taka account. (2) Other Demand Liabilities: i) Margin on L/Cs (Demand portion) ii) Margin on Guarantees (Demand Portion) iii) Lockers Key Security Deposits iv) Unclaimed Dividend/Dividend Payable v) Credit Balance of Adjustment Account/Accounts Payable vi) Security Deposit Accounts (Amount deposited by Supplier, vendor or other stakeholders) vii) Sundry/Other Deposits Accounts viii) Any other Deposits Payable on Demand ix) Bi-lateral Trade Liabilities with Overseas Bank (Demand Portion).

B. Time Liabilities: Time liabilities refer to the liabilities which the Schedule Banks are liable to repay to the Customers after an agreed period. The following Accounts are usually considered as time liabilities: (1) Time Deposits (General): i) Fixed Deposits ii) Special Notice Deposits iii) Time portion of the Savings Accounts as per the instruction of Bangladesh Bank iv) Short-term Deposit Accounts v) Recurring Deposits/DPS vi) Interest/Profit Payable on Above Accounts. (2) Other Time Liabilities: i) Employees Provident Fund Accounts ii) Staff Pension & Gratuity Fund iii) Employees Security Deposits iv) Staff Guarantee or Security Fund v) Any other liabilities payable on notice or after a Specified Period vi) Margin on L/C & L/G (Time Portion) vii) Liabilities towards Foreign Banks/Correspondent Banks viii) Bi-lateral Trade Liabilities with Overseas Bank (Time Portion).

Reporting Method: For the purpose of reporting TDTL data, banks are advised to follow the Liabilities Part of their Balance Sheet (Statement of Affairs) on respective base dates (31 December/30 June). Especially mentionable, the items/accounts for which CRR/SLR are not required to maintain by banks, those items/accounts should not be reported in the TDTL data for the purpose of Deposit Insurance Premium Assessment. These are: i) Perpetual Bond ii) Liabilities with Bangladesh Bank (Borrowings, Refinance Scheme, Stimulus Fund, Various Charges and Interest/Profit) iii) Provisions for Loans & Advances/Investments iv) Interest/Profit suspense for loans & advances/investments v) Provision for Off Balance Sheet Item vi) Provision for Nostro Account vii) Nostro Overdrawn viii) Provision for Other Assets ix) Lease Obligation under IFRSS-16 x) Start up fund as per Bangladesh Bank Circular xi) Provision for Investment (Share/Bond/Debenture Price decreases) xii) Branch Adjustment Account xiii) Dividend Payable (Under Lawsuit) xiv) Profit Markup on Investment/Unearned Income (Islamic Banking) xv) Any other instant/refinance fund created as per Bangladesh Bank instruction. The following liability accounts should be reported after adjusting with assets: i) Provision for Income Tax (adjusted with advance payment of Tax) ii) Investment in Subordinated Bond Adjusted with Total Outstanding (if Issuance is higher than Purchase).

1. Customer Deposit: For the purpose of Deposit Insurance Premium Assessment, Customer includes (Individual/Institute/Organization) who has at least one of the following Deposit Accounts with respective bank. The names of Deposit Accounts are: i) Current Deposit ii) Savings Deposit iii) Fixed Deposit iv) Special Notice Deposit (SND) v) Pension Scheme Deposit vi) Recurring Deposits vii) Foreign Currency Deposit Account viii) Resident Foreign Currency Deposit Account ix) Non Resident Foreign Currency Deposit Account x) Others (If any) For the purpose of Deposit Insurance Premium Assessment, the following entities will be considered as Customer: I. Person: A residential or non-residential individual identifiable as per KYC Guideline. II. Institutions: All types of Private Enterprises/Institutions (both local and foreign) that include: i) Sole Proprietorship: Any business operating under a valid trade license from proper authority ii) Partnership Business: Any business/organization operating under Partnership Act, 1932 or Partnership deed iii) Limited Company/Firm: Any organization registered with RJSC (Registrar of Joint Stock Companies and Firms) iv) Private Insurance Companies: Any private insurance company registered from Insurance Development and Regulatory Authority (IDRA) v) NGOs: Any NGO registered from NGO Affairs Bureau or from any other competent authority vi) Grameen Bank vii) Micro Finance Institutes (MFIs): Microfinance Institutes registered from Micro-credit Regulatory Authority (MRA) viii) Non-Scheduled Banks: All non-scheduled banks currently operating in Bangladesh, namely- Ansar VDP Unnayan Bank, Jubillee Bank, Karmasangsthan Bank, Palli Sanchay Bank ix) Private Educational Institutions (Both MPO and Non-MPO): Schools/Colleges/Madrasas, Private Medical and Dental Colleges, Private Universities, Private Institutes of IT, Other Private Educational/Technical/Vocational Training Institutions. In addition, other educational institutions which are established and maintained by any trustee board/welfare association or any government/semi government/autonomous body (e.g. Bangladesh Bank/Public Universities/Armed Forces/Police/DC office affiliated educational institution etc.) x) Co-operative Banks/Societies: All types of Co-operative Banks/Societies registered under the Co-operative Societies Act 2001 or any other law for the time being in force relating to co-operative societies xi) Alumni/Welfare Funds: All types of Alumni/Welfare funds privately owned by a group of people/professionals xii) Non-Profit institutions: All non-profit institutions including Mosques, Temples, Churches, Pagodas, Sports or Cultural Clubs, Charity Organization, Hospitals/Diagnostic Centers, Political Parties, Trade Unions, District/Upazilla Associations, Professional Associations, Chambers of Industries, Trust Funds etc. xiii) Financial Auxiliaries: All Private financial auxiliaries include- Money Changers, Brokerage Houses/Share and Security Trading Houses, Issue Manager, Underwriter, Asset Management Companies etc. xiv) Mobile Financial Service Providers: Mobile financial service providers operating as a separate business entity than the parent bank, like- bKash, Upay, Nagad, Rocket etc. xv) Leasing Companies (which are not licensed by Bangladesh Bank) xvi) Investment Companies (which are not licensed by Bangladesh Bank) xvii) Mutual Funds xviii) Merchant banks xix) Subsidiary Companies/Sister concern of banks xx) Parent Company of banks xxi) Others (if any). N.B: All of the above mentioned customer deposit will be reported separately as a. Deposit from Domestic Banking Operation b. Deposit from Offshore Banking Unit.

2. Inter-bank Deposit: For the purpose of Deposit Insurance Premium Assessment, only Scheduled Banks as defined in Article 2(j) of the Bangladesh Bank Order (P.O. NO. 127 of 1972) will be considered as bank in this section. All relevant information regarding deposit and borrowings with interest/profit on base date both in local and foreign currencies should be reported as follows: a. Deposit from other banks: All sorts of deposit (like FDR/call money etc.) from any scheduled bank both in local & foreign currencies with interest charged will have to be reported after converting in equivalent BDT. b. Borrowing from other banks: All types of placement, money at call and short notice etc. c. Balance with other banks: All types of deposit like FDR/call money, Placement, Money at Call & Short Notice with other banks both in local & foreign currencies with interest charged will have to be submitted (hardcopy only) after converting in equivalent BDT.

3. Government Deposit: All local and foreign government deposits will be reported in this section. a. Government Deposit (local): Deposit Accounts of all types of government, semi-government, autonomous bodies are to be reported in this section. The accounts may include: i) Presidency, Prime Minister's Office, other Ministries, Parliament and Judiciary ii) All Directorates, Departments and other Government offices iii) Autonomous and Semi-Autonomous Bodies (e.g. PKSF, SME Foundation, Joyeeta Foundation, Grhyayan Tahobil etc.) iv) Text Book Board and Education Board v) Government Educational Institutions (School/College/Madrasa/Cadet College/University) vi) Academy, Research Institutes, Development Institutes, Training Centre, and Council vii) Commission, Authority, Board/Development Board/Centre/Foundations viii) Publicity and News Media ix) Public Corporations x) Local Authorities xi) Public Insurance Companies (Jiban Bima Corporation, Sadharan Bima Corporation) xii) Government Projects e.g. Padma Multipurpose Bridge, Rooppur Nuclear Power Plant, Matarbari Port Development etc. xiii) Provident Fund, Pension Fund, Welfare Fund of any Govt. Organization xiv) Fund Collection through A-Challan xv) Financial Auxiliaries (BSEC, DSE, CSE) xvi) Others (if any, please specify). b. Government Deposit (Foreign): All deposit accounts of Foreign Embassies, Foreign Government Bodies, International Agencies (World Bank, IMF, IDB, ADB etc.), Foreign Direct Investments should be reported in this section.

4. Finance Companies' Deposit: For the purpose of this Circular, Finance Companies refer to all finance companies which are registered from Bangladesh Bank under Finance Company Ain, 2023 or any other Act which will come under enforcement in future. a. Deposit & Borrowing from Public Finance Companies: All types of Deposit & Borrowings from all public finance companies will be reported here, at present there are 4 (Four) public finance companies are in operation, namely- i) Agrani SME Financing Company Limited ii) Infrastructure Development Company Limited (IDCOL) iii) Bangladesh Infrastructure Finance Fund Limited iv) Saudi-Bangladesh Industrial & Agricultural Investment Company Limited (SABINCO) b. Deposit & Borrowing from Private Finance Companies: Deposits & Borrowings from all other private finance companies will be reported here.

5. Amount of Loan/Investment against all sorts of Deposit: Amount of loan (outstanding balance) disbursed to customer against all types of Deposit e.g. Current Deposit, Savings Deposit, FDR, Recurring Deposit etc.

6. Other Deposits/Liabilities: Excluding the deposit items mentioned in serial no. 1-4, all other remaining accounts/deposits/liabilities will be reported in this section. The list of some common items are mentioned here -

List of Other Deposit/Liabilities:

1. All types of Tax
2. Excise Duty
3. Value Added Tax (VAT)
4. Custom Duty
5. Utility Bills
6. All types of Fees
7. All types of Charges
8. Revenue Stamp
9. CSR fund
10. Advance Interest on Govt. Treasury Bills
11. Employee Welfare Funds of Public Organizations.
12. Hajj Package
13. Zakat Fund
14. Government Contribution
15. Gift Cheque/Gift Card/Prepaid Card
16. Hajj Deposit
17. Unclaimed deposit after 10 years
18. Interest payable to depositors
19. ATM Deposit/Balance (un-reconciled)
20. Unclaimed Deposit
21. Non-Resident A/C Export Reserve Margin Tk A/C/ RFCD/NFCD A/C
22. Money Exchange/Brokerage House Co. A/C or Fund
23. RAD (Remittance Awaiting for Disposal)
24. NPSB Foreign Remittance
25. E-Wallet/POS Deposit
26. Dispute A/C
27. Negative Balance/Credit Balance of Credit Card
28. Earnest Money/Security Money
29. Reserve Balances
30. F.C. held against BTB L/C
31. L/G Margin
32. L/C Margin
33. Foreign Trade/Export Bill proceed
34. FDR for Export Bill
35. Vostro A/C
36. Adjustment A/C
37. Lease/Ijara Deposit
38. Unidentified entries
39. Central Fund (RMG)
40. Compensation realized/receivable/suspense
41. EFTN/BEFTN/BACH/NPSB (Inter-bank Charges)
42. Inter-bank CIB Charges
43. Parking A/C
44. PAD/CC/Hypo
45. Cheque awaiting for collection
46. All types of Provision
47. Security/Guarantee Money
48. Sundry Creditor
49. Bills Payable (Pay Order)
50. Suspense A/C
51. Penalty Realization
52. Foreign Remittance Development Fund
53. Obligation Right of use of assets
54. Fraud Forgery under Suit file
55. Debit card/Credit card payable to bank
56. QR Code MFS
57. Interest payable on borrowings (excluding inter-bank)
58. FC Retention in ERQ A/C
59. Investor Scheme
60. Income sharing A/C
61. Fund buildup/Mobilization
62. Fractional Share Money
63. Adjusting Account Credit
64. Liabilities to Partner Bank
65. Subordinated Bond (Net Balance)
66. Bills Payable (Others)
67. Fixed asset/Cash insurance fund
68. Advance deposit against lease finance/house building
69. Key Deposit
70. Excess Cash
71. FCBPAR (Foreign Currency Bills Purchase Awaiting Remittance)
72. Money Gram/Western Union Development Fund
73. Online e-Transaction
74. Credit Card Insurance Amount
75. Margin Deposit Account
76. All Promotional Funds
77. Mobile Top Up
78. Others (Please specify)