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From Desmond Mgboh, Kano
The Nigerian Deposit Insurance Corporation (NDIC) has pledged its commitment to improving its payment processes to ensuring that depositors access their funds in good time after the closure of their banks.
Speaking on Monday in Kano, at the NDIC town hall meeting, NDIC’s Executive Director, Corporate Services, Emily Osuji (Mrs) stated that this resolve was clearly demonstrated during the payment of depositors of the defunct Heritage Bank Limited, Union Homes Plc and Aso Savings and Loans Plc.
According to her, the Corporation used the depositors Bank Verification Number (BVN) as a unique identifier to locate their alternate accounts into which their claims were promptly transferred.
She added that the initiative ensured the prompt payment of claims to the affected depositors within days of the closure of their respective banks.
Speaking further, she explained that depositors of Deposit Money Banks, Mobile Money Operators and Non-Interest Banks are now insured up to ₦5 million, while depositors of Microfinance Banks, Primary Mortgage Banks and Payment Service Banks are issured up to limit of ₦2 million
“This means that in the event of a bank failure, depositors are promptly paid up to the insured limit, while depositors with account balances in excess of the insured limit are paid the initial insured sum, with the remaining balances paid as liquidation dividends upon the realization of the bank’s assets and recovery of debts owed to the bank” she added.
She urged all bank depositors to ensure that their BVN was properly linked to their bank accounts and identity records adding that this will facilitate a seamless and timely access to insured deposits in the event of a bank failure.
She insisted that the Corporation was working closely with the Central Bank of Nigeria (CBN) in ensuring that licensed institutions adhere to sound governance and institute robust risk management and compliance practices.
However, she observed that ensuring financial stability was a shared responsibility by all financial system participants, albeit in varying degrees.
“While the CBN and the NDIC have continued to strengthen oversight, depositors also have a responsibility to remain vigilant and well-informed” she added.
The event, which was part of NDICs efforts to deepen stakeholder engagement, enhance understanding of the Deposit Insurance System (DIS) and promote public confidence in the Nigerian banking system, was attended by the representatives of the CBN, commercial banks, and a cross section of the members of the Kano society.
