NDIC Urges Bank Customers To Link BVN for Faster Deposit Refunds
- The NDIC has advised bank customers to ensure their BVN is properly linked to their accounts
- The corporation said this will help to enable faster reimbursement of insured deposits if a bank fails.
- NDIC also explained its decision to increase deposit insurance for DMBs, MMOs and non-interest banks
The Nigeria Deposit Insurance Corporation (NDIC) has advised bank customers to ensure their Bank Verification Number (BVN) is properly linked to their accounts to enable swift reimbursement of insured deposits in the event of a bank failure.
The call was made on Monday in Kano by the Executive Director, Corporate Services, NDIC, Mrs Emily C. Osuji, while delivering a keynote address at the NDIC Stakeholders Town Hall Meeting aimed at strengthening depositor confidence and consumer protection over the weekend.
Source: UGC
Osuji said the forum was part of the Corporation’s renewed efforts to deepen engagement with stakeholders, correct misconceptions surrounding the Deposit Insurance System (DIS), and boost public confidence in the banking sector, Vanguard reports.
She noted that many depositors still lack clarity on what the insurance scheme covers, how reimbursements are processed after a bank’s licence is revoked, and the steps customers should take when a bank is shut down.
According to her, the town hall provides an opportunity to explain these issues in practical terms and empower depositors with information on how their funds are protected and how reimbursements are paid.
Osuji reaffirmed NDIC’s mandate, which includes deposit guarantee, bank supervision, distress resolution, and bank liquidation, stressing that the Corporation remains committed to protecting depositors’ savings and maintaining stability in the financial system.
NDIC explains deposit limits for customers' accounts,
NDIC also reiterated its commitment to protecting depositors, emphasising that its slogan, “Protecting your bank deposits!”, reflects the Corporation’s resolve to ensure customers can access their funds if a bank fails.
Osuji noted that in 2024, NDIC increased maximum deposit insurance coverage to further strengthen protection.
She said that depositors of deposit money banks, mobile money operators, and non-interest banks are now insured up to N5 million, while those of microfinance banks, primary mortgage banks, and payment service banks are covered up to N2 million.
Insisting that in the event of a bank failure, depositors receive payments promptly up to the insured limit, while any balances above that are settled later as liquidation dividends following asset recovery.
She added:
"NDIC has also improved its payout process, using BVN to trace alternative accounts and transfer insured funds within days, as demonstrated in the quick settlements of Heritage Bank, Union Homes Plc, and Aso Savings and Loans Plc depositors."
Osuji therefore urged all customers to ensure their BVN is properly linked to their accounts and identity records to enable seamless and timely access to insured deposits.
Source: UGC
In his welcome remarks, the Controller of NDIC Kano Zonal Office, Mr Ahmad Umar, described the town hall theme — “Strengthening Depositor Confidence: NDIC’s Role in Financial System Stability and Consumer Protection” — as central to the Corporation’s mission.
Umar said Kano’s position as a major commercial hub makes depositor confidence vital to economic activity and financial inclusion, adding that the zonal office plays a key role in bank supervision, failure resolution, prompt payment of insured deposits, and grassroots awareness.
NDIC lists failed banks, asks customers to come for payment
Earlier, Legit.ng reported that Depositors, creditors, and shareholders of 20 failed banks in Nigeria will get an additional N16.18 billion in liquidation dividends.
The latest payment will increase dividends paid to the depositors to N61,63 billion after making cumulative payments of liquidation dividends totaling N45,45 billion as of July 2023, representing amounts exceeding the insured sums to depositors of the 20 banks.
Source: Legit.ng
