Heritage Bank: 17.6% of Deposits Unpaid Due to Verification Issues
The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that 17.6 per cent of Heritage Bank depositors had yet to receive payments, following the bank’s liquidation.
The corporation, in a statement by its spokesperson, Bashir Nuhu, on Sunday, attributed the delay to verification issues.
The Central Bank of Nigeria (CBN) on 3 June announced the revocation of the bank’s licence.
CBN said Heritage Bank violated section 12 of the Banks and Other Financial Act, the CBN as it could not improve its financial performance, “a situation which constitutes a threat to financial stability”.
The NDIC said it has since reimbursed about 82.36 per cent of the total insured deposit to date.
Read Also:
The NDIC said it initiated the payment process, utilising Bank Verification Numbers (BVN) to transfer up to N5 million (£5,000,000) per depositor into their alternate bank account within a record time of four (4) days of the bank closure. This method, which allowed depositors to receive funds without visiting NDIC offices or filling out forms, marked a significant achievement in the Corporation’s history.
“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 with payment of about 82.36 per cent of the total insured deposit to date.
“It is instructive to state that, the remaining 17.64 per cent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no 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,” it said.
The NDIC said it is actively attempting to contact these depositors through telephone calls and text messages, urging them to complete the verification process. The corporation offered both online verification options and the possibility of visiting NDIC offices in person to resolve outstanding issues.
