NDIC ACHIEVES 82.36% PAYMENT TO DEPOSITORS OF HERITAGE BANK.

The Nigeria Deposit Insurance Corporation NDIC says it has successfully reimbursed about 82.36% of the total insured deposit of the defunct Heritage Bank to date; the direct payment was done through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms which marks a historic shift for the NDIC in the prompt reimbursement of depositors.

The corporation stated that, the remaining 17.64% of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no BVN.

The corporation stated this in its latest update on the liquidation of Heritage Bank Plc. issued by its Director Communication and Public Affairs Department Bashir Nuhu.

Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria (CBN) on June 3, 2024, the Nigeria Deposit Insurance Corporation (NDIC) was appointed as liquidator and the Corporation, in accordance with Section 12(2) of BOFIA 2020 and Section 55 subsections 1 & 2 of the NDIC Act 2023, immediately commenced the process of verification and payment to insured depositors.

In discharge of its deposit guarantee mandate, the Corporation began the payment of the insured deposits of Five Million Naira (N5,000,000) maximum per depositor within a record time of four (4) days of the bank closure. Bashir said this was achieved using Bank Verification Numbers (BVN) as a unique identifier to locate depositors’ alternate accounts in other banks. “However, depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realization of the defunct bank’s assets and recovery of debts owed to the defunct bank,” he added.

“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% of the total insured deposit to date.

It is instructive to state that, the remaining 17.64% 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.” These category of depositors he stated are presently being contacted by the Corporation through telephone calls and text messages to come forward for verification. He emphasized that the verification can be done by visiting any of the Corporation’s offices or online at www.ndic.gov.ng/claims.

Bashir further acknowledged that notwithstanding the significant progress recorded in the payment of the insured deposits, the corporation is not unmindful of the uninsured deposits which constitute the larger portion of the total deposits of the defunct bank and is already working assiduously to ensure that all depositors with amounts in excess of the maximum insured amount of N5 million are timely paid through liquidation dividend from realisation of the defunct bank’s assets.

Subsequently, after the full payment of both insured and uninsured portion of deposits, NDIC will proceed with the payment of creditors in accordance with priority of claim as provided in the extant law.

The NDIC reemphasized its commitment to the safety of depositors’ funds in all licensed banks and enjoined the public to continue their banking activities without fear, as all other banks remain safe and sound.