Heritage Bank: Why We’re Yet To Pay Remaining 17.64% Of Insured Deposits -NDIC
By Sunday Etuka, Abuja
The Nigeria Deposit Insurance Corporation (NDIC) says it has achieved 82.36% of payment of insured deposits to the depositors of Heritage Bank, following the revocation of its license by the Central Bank of Nigeria (CBN) on June 3, 2024.
NDIC, in a statement on Sunday by its Director of Communication and Public Affairs, Mr. Bashir Nuhu explained that the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no Bank Verification Number (BVN).
“Others are those with no alternative accounts in other banks or accounts with KYC limit on the maximum lodgment per day and are yet to come forward for verification.
“These category of depositors are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification”, Mr. Nuhu added.
It would be recalled that following the liquidation of the Heritage Bank by the CBN, the NDIC was appointed as liquidator and the Corporation, in accordance with Section 12(2) of Banking and Other Financial Institutions Act (BOFIA 2020) and Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of verification and payment to insured depositors.
The Corporation, in discharge of its deposit guarantee mandate began the payment of the insured deposits of Five Million Naira (N5,000,000) maximum per depositor within a record time of four (4) days of the bank closure.
NDIC said, the feat was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks.
It said, the depositors with balances exceeding Five Million Naira were paid the initial insured sum of Five Million Naira, while 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.
“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”, it said.
Meanwhile, the Corporation said, notwithstanding, the significant progress recorded in the payment of the insured deposits, it is however, not unmindful of the uninsured deposits which constitute the larger portion of the total deposits of the defunct bank.
It said, it is working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5 million are timely paid through liquidation dividend from realisation of the defunct bank’s assets.
NDIC said, it has already initiated the process of debt recovery and realisation of investments and physical assets of the defunct bank to ensure timely reimbursement of the uninsured depositors of the defunct bank.
“Subsequently, after the full payment of both insured and uninsured portion of deposits, the Corporation will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law.
“We will like to reiterate that, all payments other than that of insured deposits, are subject to availability and realisation of assets of the bank in the form of liquidation dividend”, it said.
The Corporation reassured that it is committed to the safety of depositors’ funds in all licensed banks, therefore, enjoined members of the public to continue their banking activities without fear, as all other banks remain safe and sound.
It said, as earlier mentioned in its press release, press conference and advert in the print and electronic media, the verification could be done by visiting any of the Corporation’s offices or online at www.ndic.gov.ng/claims.
