When a bank collapses, the biggest question for customers is simple: Will I get my money back, and how fast? Rwanda’s 2025 regulations on the operations of the Deposit Guarantee Fund (DGF) aim to provide a clearer and more reassuring answer. Published in the Official Gazette on November 25, 2025, the regulations strengthen depositor protection by increasing insurance coverage, speeding up compensation timelines, and expanding the Fund’s role from merely paying out a determined amount to customers of failed microfinance institutions and banks to actively supporting struggling but viable financial institutions, according to the National Bank of Rwanda (BNR). ALSO READ: Why extending deposit guarantee fund mandate matters According to BNR, the fund is a key financial safety-net mechanism designed to protect depositors, either fully or partially, when a bank or microfinance institution is declared insolvent. Deposit insurance systems play a vital role in promoting financial stability by maintaining public confidence in the banking sector. The DGF compensates depositors for insured funds in the event of institutional failure. With the new regulations, the Fund can now intervene earlier to help prevent such failures - to prevent its insolvency or liquidation. ALSO READ: What next as Microfinance Inkingi goes into liquidation? Under the new framework, the guaranteed amount per depositor has been raised to Rwf1 million – which is double the maximum amount of deposit that was covered in the 2016 regulations – with banks and deposit-taking microfinance institutions contributing set quarterly premiums to build the fund. The fund is managed by BNR, in line with relevant legislation. The Central Bank sets the premium rates and procedures for payments to the fund. A depositor is defined as any person whose account holds funds in a contributing bank or deposit-taking microfinance institution. What is new? Ferdinand Murezi, Director of Financial Stability Monitoring Department at the National Bank of Rwanda, outlined the major changes as he responded to questions from The New Times. One of the key reforms is the expansion of the DGF’s mandate from a “pay box” model to a “pay box plus” model. Previously, the fund’s role was limited to reimbursing depositors after a bank or microfinance institution was declared insolvent. Under the new approach, Murezi said, the DGF can now provide financial assistance to distressed but viable institutions before they reach liquidation. ALSO READ: Deposit insurance fund in the offing Liquidation refers to the process of selling off all assets of an institution, settling its debts, distributing any remaining funds to shareholders, and closing it as a legal entity. Higher coverage limit The maximum insured amount per depositor has doubled from Rwf500,000 under the 2016 regulations to Rwf1 million under the 2025 regulations. According to Murezi, the increase “reflects the growth of the fund and the significance of depositors who can be fully covered.” However, the premium rate paid by contributing institutions remains unchanged at 0.025 per cent per quarter, equivalent to 0.1 per cent annually. “The current assessment showed that this rate was enough to ensure continuous growth of the fund and make necessary pay out without difficulties,” he noted. ALSO READ: What happens to your money when your bank or microfinance institution fails? Faster payouts for depositors Another major improvement is the reduction of the reimbursement period. Under the 2025 regulations, insured depositors must be paid within 14 days of a liquidation declaration, according to BNR. By contrast, the 2016 regulations allowed payouts to be made within 60 working days. Stronger protection for e-money holders The new regulations contain an updated provision that clarifies protection for e-money users. “Insured deposits in trust accounts holding funds underlying e-money are now entitled to the same protection from the fund as deposits held in single deposit accounts,” Murezi explained. Coverage applies only to the beneficiaries of trust accounts rather than the trustees, it specifies. It also introduces a new requirement for e-money issuers to maintain complete and up-to-date records of all beneficiaries associated with the trust account. A trust account is held by one party on behalf of designated beneficiaries, while a single account is owned and operated by an individual or legal entity. Taken together, the changes strengthen depositor protection in Rwanda. “The new regulations protect depositors more effectively than the previous ones in two ways. First, the increase in the coverage limit provides depositors with greater protection,” Murenzi noted. “Second, the maximum reimbursement period has been significantly shortened to 14 days, allowing depositors to regain access to their insured deposits faster,” he added. Coverage and exclusions Although the 2024 law mandates the BNR to determine the maximum insured amount per depositor, some deposits are excluded from coverage. These include deposits belonging to banks or deposit-taking microfinance institutions themselves,insurance companies, pension funds, and collective investment schemes, as well as government entities and public agencies. When the Central Bank declares a contributing institution to be under liquidation, insured deposits must be compensated within timelines specified by regulation. Payments may be made through another contributing institution or via alternative methods approved by the BNR.
