LAGOS, Nigeria (VOICE OF NAIJA)- The Nigeria Deposit Insurance Corporation (NDIC) has initiated the liquidation proceedings for Heritage Bank Plc subsequent to the Central Bank of Nigeria’s (CBN) decision to revoke the bank’s license.
Numerous patrons of Heritage Bank were startled on Monday upon learning of the CBN’s revocation of the bank’s license.
Prior to the regulatory action taken against Heritage Bank, the CBN stated that the bank’s ongoing financial struggles left no viable path to recovery, leading to the inevitable revocation of its license.
This announcement, made on Monday, adhered to the guidelines outlined in Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA), 2020. NDIC has been designated by the CBN as the liquidator for the defunct bank.
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The NDIC spokesperson, Bashir Nuhu, guaranteed Heritage Bank depositors that they will receive their insured amounts up to ₦5 million via other banks.
“Depositors of the bank with alternate accounts within the industry will be paid up to the insured amount of ₦5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account,” Nuhu stated.
Nuhu stated that depositors with funds over ₦5 million would receive a liquidation dividend once Heritage Bank’s assets are realized and debts are recovered.
Here are the steps to reclaim up to ₦5 million in insured funds from the liquidated bank:
1. Visit the Nearest Branch: Depositors who do not have an alternate bank account should go to the nearest Heritage Bank branch with proof of account ownership, a valid ID (such as a driver’s license, permanent voter’s card, or National Identity Card), their alternate account details, and their BVN for verification and payment of insured amounts.
2. File Online Claims:
Depositors can alternatively file claims online by visiting the NDIC website at www.ndic.gov.ng/claims/claims. They need to download and complete the claims forms and upload the necessary documentation.
3. Verification and Payment of Creditors:
Creditors should visit the nearest Heritage Bank branch to file their claims or use the online platform. The NDIC highlighted that the payment process for creditors will begin once all depositors have been paid.
4. Debtors’ Repayment of Loans:
READ ALSO: Court Orders Closure Of Heritage Bank For Failure To Pay Over N710m Debt
Debtors who have not yet repaid their loans should contact the NDIC’s Asset Management Department (AMD) for further details available on the NDIC website.
The NDIC concluded its statement by reassuring the public of its commitment to safeguarding depositors’ funds in all licensed banks.
“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound,” the NDIC stated.
In December 2012, the Central Bank re-issued Societe Generale’s banking licence, designating it as a regional bank. The new owners re-branded the bank as Heritage Banking Company Limited and began operations under this name on March 4, 2013.