Deposit protection Corporation compensates depositors THE Deposit Protection Corporation (DPC)

Senior Business Reporter
THE Deposit Protection Corporation (DPC) has set 30 June as deadline for depositors who had balances of US$1 000 and below as of February 2019 to submit claim forms to selected deposit-taking microfinance institutions for compensation.

The Government has availed through Kuvimba Mining House, US$400 000 to the DPC to start the process of compensating small and vulnerable depositors who saw the value of money in their accounts depreciate when the rate moved from US$1: $1 to US$1: $2,5 in February 2019.

Six registered deposit-taking microfinance institutions — African Century Limited, Getbucks Microfinance Bank, Empower Bank Limited, Zimbabwe Women’s Microfinance Bank, Success Microfinance Bank Limited and Lion Microfinance Limited will make the reimbursements.

The next phase of disbursements will move to commercial banks, building societies, savings banks and infrastructural banks. This would be as and when funds are made available.

Professor Mthuli Ncube

In November 2020, Finance and Economic Development Minister Professor Mthuli Ncube said the Government will compensate small and vulnerable depositors who had balances of US$1 000 and below as at 20 February 2019.

For example, a depositor who had US$1 000 in his or her account will get US$600.

In a public notice, DPC gave depositors up to the end of June to submit claims.

“Government has now availed through Kuvimba Mining House the sum of US$400  000 to the Deposit Protection Corporation as agent, for distribution to vulnerable depositors,” said the DPC in a public notice yesterday.

“Given the available resources, several scenarios were iteratively evaluated to identify a method that offers the best compensation to depositors.

“Accordingly, qualifying depositors are advised to submit their claims as at 20 February 2019 before the deadline 30 June 2022 to their respective registered Deposit-Taking Microfinance institutions.”

These will periodically submit the schedule of claims to the Deposit-Protection Corporation for verification, validation and subsequent remittance of the requisite payment to the Deposit-Taking Microfinance Institutions for onward settlement to eligible depositors in USD without incurring transaction costs, said the entity.

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

Among other benefits, the DPC guarantees compensation up to the cover limit for eligible deposits in the event of a bank failure.

Deposit protection also reduces chances of panic withdrawals, thereby contributing to the stability of the financial sector and overall economic growth.

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