The Nigeria Deposit Insurance Corporation (NDIC) has announced that payments to depositors with accounts in the liquidated Heritage Bank, holding amounts of ₦5 million and below, will commence on Monday. This announcement came yesterday following the revocation of Heritage Bank’s operating license by the Central Bank of Nigeria (CBN).
Key Details as NDIC Commences Payments to Heritage Bank Customers
Initial Payments: Depositors whose account balances do not exceed ₦5 million will begin receiving their payments on Monday. This measure aims to swiftly provide relief to a large number of small depositors affected by the bank’s liquidation.
How Heritage Bank Customers Can Get ₦5m Insured Funds: NDIC Gives Step-By-Step Process
Depositors with Larger Balances: Those holding amounts greater than ₦5 million will need to wait until the resolution of Heritage Bank’s assets. The NDIC will disburse their balances once sufficient funds have been generated from the liquidated assets of the bank. This process ensures that all depositors eventually receive their due funds, albeit in a staggered manner.
Background
License Revocation: The Central Bank of Nigeria (CBN) revoked Heritage Bank’s operating license, citing critical financial issues that rendered the bank insolvent. This action underscores the CBN’s commitment to maintaining stability and confidence in the Nigerian banking sector.
NDIC’s Role: The NDIC’s intervention is a standard procedure aimed at protecting depositors and ensuring they recover their funds. By promptly commencing payments, the NDIC aims to mitigate the impact of the bank’s liquidation on depositors, particularly those with smaller balances.
Implications for Depositors
Depositors with amounts up to ₦5 million can expect a relatively quick resolution and access to their funds starting Monday. However, larger depositors will need to be patient as the NDIC works through the process of liquidating the bank’s assets to generate the necessary funds for disbursement.
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The NDIC’s announcement brings a measure of reassurance to the affected depositors of Heritage Bank. While smaller depositors can look forward to immediate relief, those with larger deposits are assured that their funds will be secured and disbursed following the asset resolution process.
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