The Nigeria Deposit Insurance Commission (NDIC) has started the payment process for depositors in 179 microfinance banks and four primary mortgage banks that have been closed. The NDIC is asking affected depositors to provide alternate bank accounts for their payments and has also announced the commencement of the sale of assets to pay depositors with amounts above insured limits. The Managing Director of the NDIC has reassured the public of the safety of financial institutions and the speedy payment of insured sums.
The Nigeria Deposit Insurance Commission (NDIC) has initiated the payment process for depositors in 179 microfinance banks (MfBs) and four primary mortgage banks (PMBs) which have been shut down. The NDIC, which is responsible for guaranteeing the payment of deposits in the case of failure of an insured financial institution, is now calling on affected depositors to provide alternate bank accounts for their payments.
In a statement issued on the commission's website, depositors without alternate accounts in commercial banks and those who have not been verified yet are advised to visit the nearest NDIC office with proof of account ownership and verifiable means of identification for the verification and payment process.
For individuals who do not possess an alternate bank account, the commission has provided an option for downloading the online verification form from the claims page of its website. It is important to note that the NDIC does not provide insurance cover for depositors in microfinance banks and mortgage banks above ₦250,000.
The commission has also announced its commencement of the sale of assets and recovery of debts owed by the closed banks in order to pay the balances of depositors who had deposits exceeding the insured limits. These limits are ₦200,000 for microfinance banks and ₦500,000 for primary mortgage banks.
The Managing Director of the NDIC, Bello Hassan, reassured the public of the safety of financial institutions and emphasized that the commission will not compromise on standards as it carries out the payment process. Speaking during a capacity building workshop organized by the corporation, Hassan underscored the crucial role played by the NDIC as a deposit insurer in the country's banking system. He also assured depositors of the closed banks that their insured sums will be paid promptly.
The payment for depositors affected by the liquidation process is a crucial step taken by the NDIC to alleviate the financial burden faced by these individuals and ensure the stability of the banking system. The commission's prompt action in addressing the issue and its commitment to meeting its statutory obligations are commendable.
This move by the NDIC highlights the importance of having a robust deposit insurance system that can guarantee the safety and security of depositors' funds in the event of bank failures. It also serves as a reminder for individuals to be vigilant and informed about the financial institutions they entrust their money with.
In conclusion, the Nigeria Deposit Insurance Commission's commencement of the payment process for depositors in closed microfinance banks and primary mortgage banks is a positive step towards resolving the financial distress faced by these individuals. With the assurance of speedy payment of insured sums and the sale of assets to offset balances above the insured limits, depositors can be confident in the protection provided by the NDIC.
Source of content: OOO News 2023-08-07 News
More detailed, more comprehensive, fresher news, please visit OOO NEWS.
