The NDIC will pay a maximum of N5 million to each Heritage Bank depositor following the lender's license revocation. This aligns with deposit insurance laws, protecting customers' funds up to the insured limit during bank failures.
The Nigeria Deposit Insurance Corporation (NDIC) has announced that it will pay a maximum insured deposit of N5 million to each customer of the recently defunct Heritage Bank. The move comes after the Central Bank of Nigeria revoked the lender's operating license due to its inability to improve its financial performance.
In a notice to depositors, the NDIC stated that the maximum payout of N5 million per depositor is in line with existing laws governing the revocation of banking licenses. The corporation has assumed the role of appointed liquidator and will oversee the winding-up process of Heritage Bank's affairs.
"The Corporation will pay all its depositors their insured deposits up to the statutory maximum of N5,000,000.00 per depositor for Deposit Money Banks (DMBS)/mobile money subscribers," the NDIC said in the statement.
The announcement aims to provide clarity and reassurance to Heritage Bank's customers, many of whom may have concerns about the safety of their deposits. The NDIC's deposit insurance scheme serves as a crucial safety net, protecting depositors' funds up to the insured limit in the event of a bank failure.
For depositors with funds exceeding the insured amount, the NDIC stated that they would be paid as and when the assets of the closed bank are realized during the liquidation process.
The corporation also advised depositors to watch for upcoming publications in national dailies, which will provide further details on the commencement of insured deposit payments.
