Heritage Bank: 17.64% of insured deposits pending due to lack of BVN, others — NDIC reveals

…As other customers receive N5m each

By Matthew Denis

The Nigeria Deposit Insurance Corporation (NDIC) has disclosed that 17.64 percent of the insured deposits from the defunct Heritage Bank are still pending due to depositors’ accounts either having Post No Debit (PND) instructions or lacking Bank Verification Numbers (BVN).

In a statement signed by Director of Communications and Public Affairs, Bashir Nuhu, and made available to Nigerian NewsDirect, the NDIC noted: “It is instructive to state that the remaining 17.64 percent of the insured deposits yet to be paid were largely depositors whose accounts have post no debits (PND) instructions or have no BVN.”

The statement further noted that some depositors have either no alternative accounts in other banks or accounts with Know Your Customer (KYC) limits on daily lodgments.

These depositors are currently being contacted by the NDIC through telephone calls and text messages for verification. The NDIC further encouraged the depositors to verify their accounts either by visiting any of the Corporation’s offices or online at www.ndic.gov.ng/claims.

The corporation noted its “significant progress in paying out insured deposits, starting payments of up to Five Million Naira (N5,000,000) per depositor within a record time of four days following the bank’s closure.”

This achievement was made possible through the use of Bank Verification Numbers (BVN) as unique identifiers to locate depositors’ alternate accounts in other banks. “This unprecedented achievement of direct payment through BVN-linked alternate accounts without the need for depositors to visit NDIC offices or fill out forms marks a historic shift for the NDIC in the prompt reimbursement of depositors,” the statement added.

Depositors with balances exceeding the insured cap of Five Million Naira have received the insured sum, while the remaining balances, classified as uninsured deposits, will be paid as liquidation dividends upon the realisation of the bank’s assets and the recovery of debts owed to the defunct bank.

“Depositors with balances exceeding Five Million Naira have been paid the initial insured sum of Five Million Naira, while the remaining balances (classified as uninsured deposits) will be paid as liquidation dividends upon realisation of the defunct bank’s assets and recovery of debts owed to the defunct bank,” the NDIC noted.

The NDIC emphasised its commitment to ensuring the timely reimbursement of both insured and uninsured deposits, saying, “The Corporation is actively engaged in debt recovery and the realisation of the defunct bank’s investments and physical assets to facilitate these payments. Following the settlement of all deposits, the NDIC will proceed with the payment of creditors in accordance with legal priorities.”

The Corporation further reassured the public of the safety of depositors’ funds in all licensed banks and encouraged ongoing banking activities.