In the event of a forced liquidation of a bank, the Deposit Insurance Corporation is mandated to compensate depositors' current and savings accounts up to MNT 20 million, according to Clause 8.1 of Article 8 of the Law on Bank Deposit Insurance.
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The compensation calculation takes into account the balance of each depositor's current and savings account as of the day of the bank's liquidation, inclusive of accrued interest according to the contractual terms. If the bank has any non-performing loans that are overdue by more than 90 days, then the amount of such loans, along with the interest, is deducted. The remaining amount, up to MNT 20 million, will be reimbursed.
(deposit*+interest rate) – (loan**+interest rate) ≤ 20 million tugriks
*Savings and deposit accounts
**Only loans that have been expired for more than 90 days
Depositors with bank deposits exceeding MNT 20 million will be reimbursed up to MNT 20 million by the Deposit Insurance Corporation. Any amount exceeding MNT 20 million can be claimed from the receiver of the liquidated bank.
The receiver of the bank will disburse your money in accordance with the payment order stipulated in Article 73 of the "Banking Law".
SINGLE ACCOUNTS
If you have several deposit accounts in the liquidated bank, the insurance compensation shall be estimated from the consolidated amount of all your account balances in the bank as of the bank liquidation date./Article 9 of the Law on Bank Deposit Insurance//
Explanations:
Name of the deposit account holder: Anar
| Deposit type | Account type | Total account balance /MNT/ |
| Time deposit | /MNT/ | 18,000,000 |
| Demand deposit | CNY | 4,000,000 |
| Demand deposit | /MNT/ | 500,000 |
| Total account balance | 22,500,000 | |
| Amount of insured deposits of Anar | 20,000,000 | |
| Amount of ineligible deposits | 2,500,000 |
Explanation:
Citizen Anar has time and demand deposits in the liquidated Bank A with a total balance of MNT and 22,500,000 CNY. He is entitled to a total reimbursement of up to MNT 20 million from the Deposit Insurance Corporation. However, ineligible ** means that the citizen will receive 2,500,000 MNT from the receiver of the liquidated Bank A.
Deposits with joint account
The reimbursement amount for joint account holders will be up to 20 million MNT. Joint account holders must come together in person to receive reimbursement.
With the exception of cases where they have provided proof that their ownership percentages are not equal, reimbursement will be split evenly between joint account holders. (Clause 9.4 of Article 9, The Bank Deposit Insurance Law)
Furthermore, as per the law, the total amount of insured deposits held by depositors, whether individually or in joint accounts, should not exceed MNT 20 million.
Example №2
Name of the deposit account holder: Bat
Joint holder of the account: Tuya
| Deposit type | Account type | Total account balance /MNT/ |
| Time deposit | Joint account | 24,000,000 |
| Current account | – | 600,000 |
| Total account balance | 24,600,000 | |
| Amount of insured deposits of Bat | 10,600,000 | |
| Amount of insured deposits of Tuya | 10,000,000 | |
| Amount of ineligible deposits | 4,000,000 |
Explanation:
Citizen Bat held a savings account and current account in the liquidated bank A. He had 600,000MNT in the current account and 24,000,000 MNT in the joint savings account, held with citizen Tuya. Unless the deposit holders present documentary proof of the unequal share of the deposit, the Deposit Insurance Corporation will equally distribute up to 20 million MNT reimbursement to the holders of the deposit.
**4,000,000 MNT that exceeds insurance can be claimed from the bank receiver of the liquidated bank.
DEPOSIT OF UNDERAGED CITIZEN
The insurance compensation entitlement of the deposits of the underaged citizen shall not be restricted in relation to joint ownership of the deposit. /Provision 9.5 of article 9 of the Law on Bank Deposit Insurance
Example №3
Name of the deposit account holder: Boldoo /junior /
Joint holder of the account: Munkhuu /Bold’s parent/
| Deposit type | Account type | Total account balance /MNT/ |
| Children’s deposit | Joint account | 30,000,000 |
| Total account balance | 30,000,000 | |
| Amount of insured deposits of Bold | 20,000,000 | |
| Amount of insured deposits of Munkhuu | 10,000,000 |
Explanation:
Bold has a 30 million MNT deposit account in the liquidated bank and his father Munkhuu is the joint holder of the account. The Deposit Insurance Corporation shall reimburse up to 20 million MNT compensation to Bold for his deposit account. As the holder is underaged, his father Munkhuu shall be entitled to receive the insurance compensation on behalf of his son. Moreover, as he is the joint holder of the savings account, he will be entitled to receive the 10 million MNT balance. In such a case, the total of the compensation received by citizen Munkhuu shall not exceed 20 million MNT, including the other current and savings account in the liquidated bank.
INHERITED DEPOSIT
In case of the compensation for the inherited deposit, the heir shall receive separate reimbursement for his savings account and inherited deposit. /Provision 17.3 of article 17 of the Law on Bank Deposit Insurance/
Explanation:
Name of the deposit account holder: Tamir
| Deposit type | Account type | Total account balance /MNT/ |
| Current account | – | 500,000 |
| Time deposit | Inheritance | 30,000,000 |
| Total account balance | 30,500,000 | |
| Amount of insured deposits of Tamir | 500,000 | |
| AMOUNT OF INSURED SAVINGS TO BE RECEIVED BY INHERITANCE | 20,000,000 | |
| Amount of ineligible deposits | 10,000,000 |
Explanation:
Deposit holder Tamir has a current account in the liquidated bank. He also has an inherited deposit account. The Deposit Insurance Corporation will separately reimburse up to 20 million MNT for Tamir’s current account and up to 20 million MNT for his inherited deposit. In other words, Tamir will receive 20,500,000MNT compensation. ** The remaining 10 million MNT not covered with the deposit insurance can be claimed from the bank receiver of the liquidated bank.