HERITAGE BANK LIQUIDATION: NDIC starts payment
Oru Leonard
The revocation of Heritage bank’s license by the Central Bank of Nigeria (CBN), sent shockwaves through the financial community. However, in the midst of uncertainty, the Nigeria Deposit Insurance Corporation (NDIC), with the mandate to redeem depositors in the event of liquidation by banks sprang into action.
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.
Within a remarkable four days, the Corporation began disbursing the maximum insured amount of Five Million Naira (N5,000,000) per depositor. This feat was achieved through the innovative use of Bank Verification Numbers (BVN) to locate depositors’ alternate accounts in other banks.
For depositors with balances exceeding Five Million Naira, NDIC provided an initial payment of the insured sum, offering a lifeline amidst the turmoil. The Corporation’s swift action brought relief to countless individuals and businesses, mitigating the impact of the bank’s closure.
As the payment process continues, NDIC has said the corporation remains committed to its deposit guarantee mandate, ensuring that Heritage Bank’s depositors receive the support they need during this challenging time. Through its prompt and effective response, NDIC has demonstrated its unwavering dedication to safeguarding the interests of Nigerian depositors.
