It further stated that the majority of the 17.64 percent of insured deposits that are still unpaid are held by depositors whose accounts have orders to postpone debits or do not have a bank verification number.
This was revealed on Sunday in Abuja in a statement that was signed by Bashir Nuhu, Director of Communication and Public Affairs.
Heritage Bank Plc’s banking license was terminated by the Central Bank of Nigeria on June 3, 2024, as a result of ongoing financial instability and regulatory violations
The CBN’s mandate under Section 12 of the Banks and Other Financial Institutions Act 2020, which strives to ensure a stable financial system in Nigeria, is in keeping with the decision, according to the apex bank.
The NDIC said that it would start paying the bank’s 2.3 million depositors once Heritage Bank’s license was revoked.
In the statement released on Sunday, the director provided an update, revealing that four days following the liquidation, payments to the impacted clients began.
Bank Verification Numbers, he continued, were used as a special identification to find depositors’ other accounts in other banks in order to accomplish this accomplishment.
A portion of the announcement said, “Within a record-breaking four days following the bank shutdown, the Corporation started paying protected deposits, up to a maximum of N5 million per depositor, in fulfillment of its deposit guarantee mandate.
This was accomplished by locating depositors’ secondary accounts in other banks using their Bank Verification Numbers, which serve as a unique identifier.
With payment of approximately 82.36% of the total insured deposit to date, “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.”
The director informed depositors holding more than N5 million that, upon the realization of the bank’s assets and the collection of debts owed to it, the remaining amounts—which are categorized as uninsured deposits—would be distributed as liquidation dividends.
It is instructive to note that the majority of depositors with accounts that lack BVN or post no debit instructions accounted for 17.64 percent of the insured deposits that have not yet been paid. The others are individuals who have not yet shown up for verification and do not have any other bank accounts. They can also be accounts with a KYC limit on the daily maximum deposit.
In contrast, depositors with balances over five million naira have already received the initial five million naira insured sum; the remaining balances, which are referred to as uninsured deposits, will be paid as liquidation dividends once the defunct bank’s assets are realized and its debts are recovered, the statement continued.
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