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Wednesday 22 September 2021
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NDIC to ensure prompt payment to failed bank depositors in Nigeria

The Nigeria Deposit Insurance Corporation (NDIC) said it has commenced on site visits to selected agent banks across the country, to assess their level of compliance with processes to ensure prompt payment to depositors of closed deposit money banks (DMBs) and microfinance banks (MFBs), according to a statement from the organization, obtained by PANA here on Tuesday.

The objective of the exercise is to ”Confirm that payment to depositors is carried out expeditiously and in conformity with the operational guidelines already given to the agent banks by the Corporation; assess and ensure that payments of both insured and uninsured deposits remitted to the banks are made to the depositors of the closed banks without let or hindrance”.

It also includes to, ”Ensure that the banks properly keep the payment documents forwarded to them by the Corporation such as mandate files, signature cards, Liquidator’s certificates, Deposit Registers, to ensure that payment to the depositors are not impeded by the absence of these records. identify and address areas of challenges being faced by the Agent banks that may hinder them from making payment to depositors of the closed banks; and Further train the desk officers in charge of payment where the need arises”.

The exercise is to cover 93 selected branches of the agent banks, which are spread across the country. For effective conduct of the exercise, the branches have been selected on zonal basis.

A breakdown shows that 27 branches would be visited in the South West parts of the country, 24 in North Central and 13 in the South South.

In addition, the Corporation would visit 15 branches in the South East, eight in the North East and six in the North West zones.

It 2009, the Corporation conducted a similar exercise, which involved 72 selected agent banks branches in four of the six Geo-political zones in the country.

They include South West, North Central, North East and North West geo-political zones.


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