The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will begin payment of insured sums to 2.3 million depositors of Heritage Bank in-liquidation within the week . This move comes two days after the Central Bank of Nigeria (CBN) announced the revocation of Heritage Bank's license.
Payment of Insured Sums
The Managing Director of NDIC, Mr. Bello Hassan, said that the payment of insured sums would help to engender confidence among depositors to promote financial stability. He noted that 99.9% of depositors from the defunct bank had balances of less than N5 million, while only 4,000 depositors had balances exceeding N5 million.
Customers with Bank Verification Number (BVN) will be paid without verification with the Corporation, while those without BVN will visit the nearest NDIC office or website for their verification. The managing director assured depositors that there was no need to panic as the Corporation would settle all insured deposits.
Challenges of Banks' Liquidation
Mr. Hassan noted that the Corporation had experienced difficulties in loans recoveries ¹. However, he assured that the Corporation would immediately commence the process to avoid delays.
Litigations
The Corporation is ready for any litigation that would emanate from the handover of the bank. Mr. Hassan said that the Corporation would rely on support from the judiciary for expedited hearings on any debt recovery case brought by the Corporation.
When cases are delayed in debt recovery, it is depositors that suffer. The Corporation believes that the judiciary will give the cases accelerated hearing.
Background
Ads
Posts you should not miss out
- The Binance Blueprint: How to Turn $100 into $10,000 in Just One Month!
- You Won't Believe What Happens When You Mine Pi!
- The Shocking Truth About TIN: What You Don't Know Can Hurt You!
- Did President Tinubu lie about the 3 Million Technical Talent Program?
- Carbon Loan App Exposed: Is it a Trap or a Lifesaver?
- Zenith Bank's Best-Kept Secret: Open a Current Account with No Initial Deposit!
Heritage Bank's license was revoked by the Central Bank of Nigeria (CBN) on Monday. The CBN said the move was under its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
According to the CBN, Heritage Bank had breached Section 12(1) of BOFIA, 2020. The Board and Management of the bank had failed to improve the bank's financial performance, a situation that constitutes a threat to financial stability.
The CBN said it took action to strengthen public confidence in the banking system and ensure that the soundness of the financial system is not impaired. The apex bank then appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator of the bank under Section 12(2) of BOFIA, 2020 .
Required data to file for claim(Customers without Bvn)
Individual Depositors
Download the Depositors Verification Form (CRD VF1)Fill in the following required fields:
- Name of the closed bank
- Depositor’s name
- Depositor’s signature
- Depositor’s current contact address
- Type of deposit account
- E-mail address (if any)
- Mobile phone number
- Current bank account details
- Attach one recent passport-sized photograph
- Fill the checklist form, sign and date it
- Attach a proof of deposit (passbook, chequebook, term deposit certificate, statement of account, etc
- Attach a valid means of identification (Driver’s Licence, International Passport, National Identity Card, NIN Slip/Card, Voters card, or written identification by a traditional ruler or Local Government Chairman)
Companies
In addition to requirements for individual depositors:- Company seal must be affixed on the forms
- All signatories must sign the forms
- The recent passport photographs of all signatories must be attached
- Attach copy of Certificate of Incorporation
Government Agencies
- signatories must sign the forms
- The recent passport photographs of all signatories must be attached
- Attach letter of authorisation/introduction of signatories
- Attach copies of valid means of identification and official identity cards of the signatories
Registered Firms/Partnership
- All authorized persons must sign the forms
- The recent passport photographs of all authorized persons must be attached
- Partners’ resolution in respect of persons authorized to file claim on behalf of the firm
- Attach copies of valid means of identification and official identity cards of the authorized persons
All completed forms and supporting documents should be sent to:
The Director
Claims Resolution Department
Nigeria Deposit Insurance Corporation
Mamman Kontagora House (MKH)
23 A Marina, Lagos
Alternatively, the documents should be scanned and sent to claimscomplaints@ndic.gov.ng
In Summary:
The NDIC has assured depositors of Heritage Bank that their insured sums would be paid within the week. The Corporation has also assured that it would settle all insured deposits. The move by the NDIC is expected to engender confidence among depositors and promote financial stability.
However, all deposits below N10 ,000, 000.00 (Ten million Naira) will be paid in full, while deposits above will be paid the sum of N5, 000, 000.00 (Five Million Naira) as per the NDIC MOU.
FAQs
What is the Nigeria Deposit Insurance Corporation (NDIC)
The Nigeria Deposit Insurance Corporation (NDIC) is a financial institution that provides deposit insurance to depositors in banks in Nigeria.
What is deposit insurance?
Deposit insurance is a protection provided to depositors in banks in the event of a bank failure. It ensures that depositors'
More Update coming soon!
){kind=link}
0 Comments