The Nigeria Deposit Insurance Corporation (NDIC) says it has disbursed the insured deposits of N5 million each to 82.36 per cent of customers of the defunct Heritage Bank.
It also noted that 17.64 per cent of the insured deposits still pending mainly belong to depositors with accounts that have Post-No Debits instructions or lacking Bank Verification Number (BVN).
The NDIC’Director, Communication and Public Affairs, Bashir Nuhu, disclosed this on Sunday in Abuja.
On June 3, 2024, the Central Bank of Nigeria (CBN) revoked the license of Heritage Bank Plc citing persistent financial instability and regulatory breaches.
The apex bank justified its action with CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which aims to maintain a stable financial system in Nigeria.
Following the withdrawal of Heritage Bank’s licence, the NDIC stated that it would begin payment of the 2.3 million depositors of the bank.
Giving an update in the statement issued on Sunday, Nuhu said that disbursement to affected customers started four days after the liquidation.
He added that the feat was achieved using BVN as a unique identifier to locate depositors’ alternate accounts in other banks.
The statement read in part: “In the discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of N5m maximum per depositor within a record time of four days of the bank closure.
“This was achieved using Bank Verification Numbers as a unique identifier to locate depositors’ alternate accounts in other banks.
“This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic shift for the NDIC in the prompt reimbursement of depositors with payment of about 82.36 per cent of the total insured deposit to date.”
For depositors with more than N5million, Nuhu explained that the remaining balances (classified as uninsured deposits) would be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank.
“It is instructive to state that, the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits instructions or have no BVN. Others are those with no alternative accounts in other banks or accounts with a KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“However, depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank,” the statement added.