Irrevocable bank deposits, under which early withdrawal at the depositor's initiative is not provided for, will be introduced in Belarus from November 12. The relevant provision is enshrined in Decree No. 7 of the President of the Republic of Belarus of November 11, 2015, "On attracting funds to deposits". This is reported by the press service of the National Bank, according to BELTA.
Irrevocable bank deposits, under which early withdrawal at the depositor's initiative is not provided for, will be introduced in Belarus from November 12. The relevant provision is enshrined in Decree No. 7 of the President of the Republic of Belarus of November 11, 2015, "On attracting funds to deposits". This is reported by the press service of the National Bank, according to BELTA.
"From November 12, 2015, the classification of bank deposits in Belarus is changing," the National Bank stated. "The document (Decree No. 7. - BELTA's note) entered into force from the date of its official publication and applies only to newly concluded bank deposit agreements."
The press service explained that, in accordance with the currently applicable classification, bank deposits in Belarus are divided into several types: term deposits (deposit withdrawal occurs upon expiration of the term specified in the agreement; the interest rate depends on the amount and term of the deposit placement – the larger the deposit amount and its placement term, the higher the interest income); conditional deposits (deposit withdrawal occurs upon the occurrence of a specific condition (event) fixed in the agreement); demand deposits (funds from such a deposit can be withdrawn at any time without loss of interest, but the interest rate on them is usually lower compared to other types of deposits).
"In accordance with Decree No. 7, starting from November 12, 2015, term and conditional bank deposit agreements will be divided into irrevocable and revocable. The main distinguishing feature of these two types of agreements will be the conditions for early deposit withdrawal," the National Bank reported.
When concluding a revocable agreement, the possibility of early deposit withdrawal at the depositor's initiative will be provided for. In this case, the specific terms and conditions for deposit withdrawal will be specified in the agreement between the bank and the depositor.
An irrevocable agreement does not provide for early deposit withdrawal at the depositor's initiative. Withdrawal of the deposit before the expiration of the agreement term will only be possible with the bank's consent.
"Bank deposit agreements concluded before November 12, 2015, will be executed on the previous terms for the entire duration. Upon extension of the agreement for a new term, its provisions must be brought into compliance with the requirements of Decree No. 7," the press service noted.
"At the same time, the state continues to guarantee the full safety of funds of individuals in Belarusian rubles and foreign currency, placed in accounts and/or deposits in banks, and the reimbursement of 100% of the amount of these funds in the currency of the account or deposit with interest payment," the National Bank emphasized.