Why 17.64% of Heritage Bank customers have not received payments – NDIC

Nigeria’s Deposit Insurance Corporation (DIP) on Sunday explained why 17.64% of insured depositors of the defunct Heritage Bank have not
already paid.

In a statement issued by its spokesperson, Bashir Nuhu, the NDIC said depositors had not been paid because they had no debit instruction (PND) or no Bank Verification Number (BVN) on their accounts.

The commission added that 82.36% of the total insured depositors of the liquidated banks have been reimbursed since the Central Bank of Nigeria (CBN) revoked the banks’ licenses on June 3.

The NDIC disclosed that it started paying guaranteed deposits of a maximum of N5 million per depositor within a short period of four days after the bank closure, using the BVN as a unique identifier to locate the depositor’s alternative account in another bank.

“However, depositors with balances exceeding Five Million Naira have been paid the initial insured amount of Five Million Naira, while the remaining balance (classified as uninsured deposits) will be paid as liquidation dividend upon realization of the assets of the defunct bank and recovery of debts owed to the defunct bank,” the statement read.

“This unprecedented achievement of direct payment through alternative accounts linked to BVN without requiring depositors to visit NDIC offices or fill out forms, marks a historic change for NDIC in terms of prompt reimbursement to depositors with payment of about 82.36% of total insured deposits to date.

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“It is informative to state that, the remaining 17.64% of the guaranteed deposits that have not been paid are mostly depositors whose accounts have a no debit instruction (PND) or do not have a BVN.

“The others are those who do not have alternative accounts in other banks or accounts with KYC restrictions on maximum submissions per day and have not come for verification.

“This category of depositors are currently being contacted by the Company via phone calls and text messages to come forward for verification.”

“In relation to this, the party is currently working hard to ensure that all customers who have savings above IDR 5 billion receive timely payments through liquidation dividends from the sale of assets of banks that are no longer operating.

“The Company has initiated the process of debt collection and realization of investments and physical assets of the closed bank to ensure timely reimbursement to uninsured depositors of the closed bank.

“Furthermore, after full payment of all deposits, both insured and uninsured, the Company will continue payments to creditors in accordance with the claim priorities as stipulated in the applicable laws and regulations.”

By: Babajide Okeowo

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