By Arinda Nsheeka Wilfred
Bank of Uganda on Friday advised people to bank their money with the registered commercial banks in case the banks collapsed.
Mr Victor Walusimbi, the head of the communications department at the Bank of Uganda said the central bank controls and regulates only commercial banks, and would refund the customers’ savings if the banks collapsed.
There are 33 commercial banks in the country.
Bank of Uganda was holding an awareness campaign in Kabale at Kabale District Council hall and in Kabale Central market.
Deposit protection fund
According to Walusimbi, before the banks are allowed to operate in the country, they are mandated to deposit with Bank of Uganda, the deposit protection fund of Shs25 billions to prove their worthiness.
He said the money would compensate savings of customers incase the bank collapsed.
He warned that Saccos are regulated by the Uganda microfinance regulatory authority (UMRA), saying that Saccos don’t pay the deposit protection fund like banks, which is risky.
UMRA is an authority that regulates all Saccos in the country.
Credit cards
Mr Walusimbi called on bank customers to have credit cards, saying it would enable them get loans easily.
Credit cards contain credit information from commercial banks, credit institutions and microfinance deposit taking institutions and that information enable them to make informed decisions when lending.
Credit cards are issued by a credit reference Bureau.
Walusimbi further advised people to save for their future, especially the parents, warning them against depending on their children in the years to come.
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