In a significant development in Nigeria’s banking sector, the Nigeria Deposit Insurance Corporation (NDIC) has unveiled a structured plan to reimburse depositors of Heritage Bank, following the revocation of its operating license by the Central Bank of Nigeria (CBN). The revocation, announced on June 3, 2024, was a decisive move to address the financial instability of the bank. This article details the NDIC’s reimbursement process, ensuring that depositors are informed and prepared for the steps ahead.
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Payment to Depositors with Alternate Accounts
The NDIC has assured depositors of Heritage Bank that those with alternate bank accounts will receive up to the insured amount of ₦5 million per depositor. This payment will be facilitated using the Bank Verification Number (BVN) system to identify and process the reimbursements directly to their alternate accounts within the banking industry.
Trending: How to Claim Your Deposit from Heritage Bank: NDIC’s Step-by-Step Guide
Payment to Depositors without Alternate Accounts
For depositors who do not have an alternate bank account, the NDIC has outlined a clear verification and payment process. These depositors are required to visit the nearest bank branch with proof of account ownership and a verifiable means of identification, such as a driver’s license, permanent voter’s card, or National Identity Card. Alternatively, depositors can complete the verification process online by visiting the NDIC website and submitting the necessary documentation.
Liquidation Dividends for Depositors with Funds Exceeding ₦5 Million
Depositors with balances exceeding the insured limit of ₦5 million will be eligible for liquidation dividends. These dividends will be distributed once the bank’s assets are realized and debts are recovered. This process ensures that all depositors receive a fair share of the remaining assets of the defunct bank.
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Payment Procedures for Creditors
The NDIC has also addressed the payment of creditors of Heritage Bank. Creditors are instructed to file their claims either by visiting the nearest branch of the bank or through the NDIC’s online platform. The payment process for creditors will commence immediately after all depositors have been compensated.
Repayment by Debtors
Debtors who have not yet completed their loan repayments are advised to contact the NDIC’s Asset Management Department (AMD) for further instructions. Detailed information is available on the NDIC website.
Assurance of Safety for Depositors
The NDIC has emphasized its commitment to the safety of depositors’ funds in all licensed banks. The Corporation reassures the banking public that all banks with valid licenses remain safe and sound, encouraging continued confidence in the banking system.
FAQs
1. What led to the revocation of Heritage Bank’s license?
The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license due to financial instability and failure to meet banking regulations.
2. How much will depositors with alternate accounts receive?
Depositors with alternate accounts will receive up to the insured amount of ₦5 million per depositor.
3. What should depositors without alternate accounts do?
Depositors without alternate accounts should visit the nearest bank branch with proof of account ownership and valid identification or complete the verification process online via the NDIC website.
4. Will depositors with funds exceeding ₦5 million get their money back?
Yes, depositors with funds exceeding ₦5 million will receive liquidation dividends after the realization of the bank’s assets and debt recovery.
5. How can creditors file their claims?
Creditors can file their claims by visiting the nearest branch of the bank or through the NDIC’s online platform.
6. What should debtors do if they haven’t repaid their loans?
Debtors should contact the NDIC’s Asset Management Department (AMD) for instructions on loan repayment.
7. Is it safe to continue banking with other Nigerian banks?
Yes, the NDIC assures the public that all licensed banks are safe and sound, encouraging continued trust in the banking system.
Conclusion
The NDIC’s proactive measures aim to protect depositors and maintain stability within Nigeria’s banking sector. By providing clear guidelines and ensuring the swift processing of payments, the NDIC demonstrates its commitment to safeguarding depositor funds and upholding public confidence in the financial system. Depositors and creditors are encouraged to follow the outlined procedures to facilitate timely reimbursements and claims. For further information, visit the NDIC website or contact their support services.
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