The Sunday Mail
Livingstone Marufu —
THE Deposit Protection Corporation (DPC) has paid out US$3,2 million out of US$6,4 million to clients of failed banks. Government created the DPC to provide a safety net for clients who lost money when banks collapsed.
The cover was increased from US$500 to US$1 000 in June 2016 pursuant to provisions of Section 41(1) of the Deposit Protection Corporation Act (Chapter 24:29).
Depositors with US$1 000 or less in their accounts get all their funds while high net-worth clients and corporates are paid through the liquidation process on a pro-rata basis.
Depositors in banks that closed prior to June 1, 2016 are compensated using the old cover limit of US$500. DPC chief executive officer Mr John Chikura told The Sunday Mail Business last week that reimbursements were progressing.
“Payments to depositors of six closed banks are still in progress and we continue to encourage affected depositors to submit their claim forms for us to process the reimbursements.
“Of the required US$6,4 million, we have so far paid over US$3,2 million. This shows that we are in the right direction.
“The funds are available and depositors only need to submit a claim form and we will reimburse them within five days via respective banks or mobile phone transfers. All depositors from AfrAsia, Allied, Interfin, Royal, Genesis and Trust banks are welcome,” said Mr Chikura.
There are indications that many depositors are unaware of the cushion provided by the DPC. Besides compensating depositors in the event of bank failure, the DPC also participates in the resolution of failing or failed member institutions and liquidation of closed banks.
The deposit guarantee scheme ensures depositors are reimbursed part or all of their money in the event of a bank failure. It is compulsory for every banking institution in Zimbabwe to be a member of the DPC.
