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What We Do

हामी के गर्छौ

Deposit And Credit Guarantee fund (DCGF), established under prevailing Companies Act, 2021, on 20th September, 1974 in the name of Credit Guarantee Corporation under the initiation and equity participation of Nepal Rastra Bank(Central Bank of Nepal), Rastriya Banijya Bank and Nepal Bank Limited with 10 million of authorized capital and 3 million of paid up capital has been renamed to Deposit and Credit Guarantee Fund with the current promulgation of Deposit and Credit Guarantee Fund Act, 2017. At present, the authorized capital of the fund has been increased by 1,000 folds to Rs. 10 billion whereas the paid-up capital has reached the landmark of 10 billion.
The Fund has diversified its scope of areas and streamlined its business in the current period which was limited for the priority sector lending of Rastriya Banijya Bank and Nepal Bank Limited up to the maximum limit of 2.50 million during the initial phase of establishment. Recently, the Fund is serving in the following different sectors viz:
1.    Deposit Guarantee
2.    Credit Guarantee
a) Micro Finance and Deprived Sector Credit Guarantee
b) Agricultural Credit Guarantee
c) Educational Credit and Educated Unemployment Business Credit Guarantee
d) Small and Medium Enterprises Credit Guarantee
e) Livestock Guarantee

Deposit Guarantee
Deposit Guarantee is a program run by the government with a commitment to provide protection for the savings of general public so as to build confidence of the public over the banking system and bring the money scattered among the public into a proper banking channel to utilize it for the economic development of the country.
Necessity and Importance of Deposit Guarantee
a)  To protect depositor's interests,
b)   For stability in financial system,
c)   To protect deposits of small depositors,
d)   To increase competitiveness in financial system, and
e)   To reduce the use of state funds in financial rescue works.

Credit Guarantee
Credit Guarantee is a program run by the nation for increasing financial access to the poor, privileged, marginalized and deprived sector people lacking source of fund with lot of zeal via bank and financial institutions with a commitment to provide protection against the investment of bank and financial institutions under those sectors.

Necessity and Importance of Credit Guarantee
1.    To encourage banks to invest in risky and deprived sectors/areas.
2.    To make arrangements that can supplement financial access from the backward region of the nation.
3.    To provide banking facilities for the deprived sectors.
4.    To minimize the problem of capital scarcity in banks,
5.    For creation of self-employment opportunities,
6.    It helps in poverty alleviation.
7.    To support in the overall economic development of nation.