The depositors’ bill that has just been passed into law by parliament will not be beneficial to people who save huge amounts of money at the banks, a member of the Finance Committee, Dr Mark Assibey Yeboah has said.

The bill aims to protect depositors who save with banks and microfinance institutions in case of a bust or mishap. Had the bill been passed earlier, clients of the infamous DKM Microfinance firm, which went bust last year, could have had some respite.

Dr Assibey Yeboah, however, has warned that customers should not be too excited with the passage of the bill, since it comes to protect only small depositors.

“We shouldn’t be so excited because the coverage, if you look at the numbers involved, this is for small-time depositors. So, if you have let’s say GHS1,000,000 in a bank and the bank folds up, you are not going to get a GHS1,000,000, you will get up to GHS5,000 because it is geared at protecting small-time depositors. Now for a savings and loans, rural banks or a microfinance institution…you will get up to a GHS1,000 in return. It is to protect small-time depositors”, he explained.

Meanwhile, the Chairman of parliament’s Finance Committee, James Avedzi has called for public sensitisation on the law.

Speaking to Class News, Mr Avedzi urged the Bank of Ghana to educate the citizenry on the purpose of the bill and how to lay claim to compensation after losing deposits.

“Now if this has been in existence before the famous DKM issue, the depositor would have been protected, at least, to cushion them before we look at how the rest would be handled. That is the essence of this bill.

There must be education, Bank of Ghana must go out there to educate after the bill has been assented to by the president, and it becomes a law. They would first of all have to establish the corporation and then the corporation will then go out and then educate the public about this new development so that the depositors would have confidence that, at least, I am protected to some level in case any event occurs”, he said.