The Nigeria Deposit Insurance Corporation (NDIC) has commenced the verification of insured depositors of the defunct Peak Merchant Bank for the payment of their insured sums.
The NDIC, in line with its mandate of deposit guarantee and reimbursement of depositors in the event of bank failure, urged depositors to visit the bank’s old premises or the corporation’s office nearest to them with proof of account ownership and verifiable means of identification for the exercise.
The payment was in February 2020 put on hold due to litigation challenging the revocation of the bank’s operating license.
According to a press statement signed by the corporation’s spokesperson, Bashir Nuhu, the verification exercise will enable depositors of the defunct bank to cross-check and ascertain their account information, as well as balances with the bank as at closure.
The process is a prelude to the payment of insured sums to such depositors, and the insured sum is the first and mandatory payment that depositors are paid, up to a specified limit, if a bank fails.
The NDIC also added that depositors will be paid amounts in excess of the insured sums subsequently as liquidation dividends from the proceeds of the closed bank’s assets as realized by NDIC, the liquidator.
This move by the NDIC is aimed at ensuring that depositors are reimbursed for their losses in the event of a bank failure, as well as increasing public confidence in the banking sector.
Deposit insurance is a crucial aspect of the financial system and helps to promote financial stability.
The verification exercise is expected to be concluded within a specified period, after which payment will be made to verified insured depositors.
The NDIC also assured depositors of its commitment to ensuring the protection of their funds and to the timely payment of verified claims.