The Deposit Insurance Corporation (DIC) of Malawi has encouraged the public to develop a culture of saving their money in commercial banks as a way of ensuring the safety of their funds.

Deposit insurance is a financial protection mechanism designed to compensate depositors in the event of a failure or collapse of a licensed bank.

DIC Operations Manager, Lowina Mwasigala, emphasized the importance of understanding the corporation’s role in safeguarding depositor funds.

She explained that the DIC covers up to K3 million per depositor in the event of a bank failure.

Mwasigala made the remarks in Blantyre during a media workshop aimed at raising awareness and improving public understanding of the deposit insurance scheme in Malawi.

The DIC was established under the Deposit Insurance Corporation Act of 2022 and has been operational for the past 15 months.

It operates under the oversight of the Reserve Bank of Malawi (RBM).