Deposit Guarantee Fund

The Deposit Guarantee Fund is a financial safety net that protects depositors' money in banks. If a bank faces difficulties or fails, the fund ensures that depositors recover a certain amount of their deposits, typically up to a specified limit. This system helps maintain trust in the banking sector by reducing the risk of losing savings and stabilizing the economy. The fund is usually financed by contributions from banks and is managed by a regulatory authority. Its primary goal is to safeguard consumer interests and ensure confidence in the financial system.