PIDM extends coverage to foreign currency deposits

Good news for depositors.

From The Star..

KUCHING: The Malaysia Deposit Insurance Corp (PIDM) has extended its deposit insurance system to cover foreign currency deposits with its 24-member commercial banks and 17-member Islamic banks.

The deposit insurance system, which was launched six years ago, protects depositors against the loss of their insured deposits placed with member banks.

PIDM chief operating officer Md Khairuddin Arshad said the maximium limit of the coverage had earlier been raised to RM250,000 per depositor per member bank from RM60,000.

Fixed deposits, current and saving accounts as well as individuals and businesses are protected under the system.

The coverage limit is to be reviewed every five years. The system does not, however, protect deposits not payable in Malaysia, money market deposits, negotiable instruments of deposit and other bearer deposits, repurchase agreements and unit trusts.

"In the unlikely event of a member bank failure, PIDM will reimburse affected depositors promptly on their insured deposits.

"Deposit insurance protection is provided automatically - depositors do not need to apply or pay for this protection," said Khairuddin during a media briefing here Wednesday.