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Business Reporter
THE Depositors Protection Corporation (DPC) says a number of depositors are reluctant to claim their money from closed banks on the grounds that the balances are “too” small. DPC is yet to pay $338,960 compensation to Royal, Trust and Genesis Bank depositors following the closure of the three banking institutions a few years ago.

The entity was set up to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.

DPC public relations officer, Allen Musadzimura said depositors at the closed Royal, Trust and Genesis Banks were reluctant to submit claim forms for compensation.

“A total of $473,563 out of $812,523 has been paid to depositors of the three banks as at February 26, 2015. We’ve not been able to reach other clients at the banks to claim their money,” he said recently.

“Most of them are not coming forward because they had small balances in their account, which is why we still have $338,960.”

Musadzimura said some of the depositors had as little as $1 up to $5 dollars in their accounts.

He said while Trust Bank and Royal Bank were in their final stages of liquidation, DPC would continue making payments to depositors who submit their claim forms.

The Royal Bank was closed in July 27, 2012 with about 74 percent of the insured deposits having been paid so far.

The bank has a total of insured deposits of $472,207 and out of that amount $353,180 has been paid for the insured deposits.

Trust bank was closed down in December 6, 2013 with a total of insured deposits at $328,516.

DPC has insured 36 percent of the deposits worth $119,778.

Genesis bank was closed in June, 11, 2012 with insured depositors accounting for $8,371 out of $11,800.

Early this week the Deposit Protection Corporation (DPC) said it had so far compensated 15.6 percent of insured Interfin Bank deposits and 8.1 percent of Allied Bank deposits while compensation for AfrAsia Bank’s depositors will commence soon.

According to reports, Interfin, whose banking licence was cancelled in 2012, owes depositors more than $60 million while Allied bank owes at least $14,7 million to its depositors, of which $1,3 million will be paid by the DPC.

DPC will also pay out $3,3 million to 18,000 AfrAsia depositors and $1,3 million of the $14,7 million owed to depositors of Allied Bank with the rest to be settled after the liquidation of the bank’s assets.

DPC through the Deposit Protection Fund is mandated to compensate at least 90 percent of depositors up to the maximum insurable limit.

DPC said payments to Allied and Interfin bank depositors began on February 23 and March 3 respectively while payments to Genesis Investment Bank, Royal Bank and Trust Bank depositors were in progress.

DPC has in the past said struggling banks were not paying premiums towards the fund, putting a strain on the DPC when it is time to compensate depositors.

Musadziruma said the fund is able to meet its statutory obligation of compensating small depositors of failed banking institutions as per its mandate.

Depositors from the closed institution have been urged to submit their claims forms for reimbursement.

Payments are also in progress for Rapid Discount House, which was closed on March 26, 2014, Sagit Finance House which was shutdown on March 2, 2006 and Century Discount which closed operations on January 2, 2004.

Depositors are paid $500 per account. Any balance above the insurable limit is paid via the liquidation process upon realisation of assets.