Central Bank demands removal of non-refundable deposit clauses from bank contracts

The Central Bank has demanded the exclusion of terms on the non-return of deposits from banking agreements

The Central Bank has demanded that commercial banks remove provisions from deposit agreements that restrict clients' right to the return of their own funds.

An audit revealed that the agreements of several banks contained clauses under which the bank would not be held liable for the early return of a deposit. In particular, such restrictions applied during periods of mass riots, rallies, street protests, armed attacks, and bank insolvency.

At the same time, current legislation obliges banks to return the deposit amount or a part thereof upon the depositor's request, regardless of the type of deposit. Consequently, agreement terms that restrict this right have no legal force.

In this regard, the Central Bank has demanded that commercial banks review all active deposit agreements and immediately remove any provisions that contradict the legislation.