NDIC assures PSB Customers of coverage

Ibrahim Umaru
Ibrahim Umaru

THE Nigeria Deposit Insurance Corporation, NDIC, has assured customers, including those of recently licensed Payment Service Banks, PSBs, of adequate coverage in the event of failure. Ibrahim Umaru, managing director and chief executive, NDIC, said the corporation had taken steps towards securing depositors’ funds as it strives to encourage financial inclusion in the country.

Speaking at the NDIC special day, at the ongoing Lagos International Trade Fair, Umaru said following the issuance of the framework for the Licensing and Regulation of Payment Service Banks, PSBs, by the CBN, which stipulated the extension of Deposit Insurance Coverage to the depositors, the Corporation has designed an appropriate Differential Premium Assessment System, DPAS, Matrix for Premium computation/payment as well as set an Insurable Limit to the depositors in the event of failure.

“The corporation is taking these measures so as to engender confidence in the system and to discourage bank customers from keeping cash at homes, shops and other places outside the banks. Monies kept outside the banks are not insured by the corporation and are susceptible to loss through robbery, theft or fire outbreak,” he said.

Umaru further said the corporation had also ensured provision of the deposit insurance coverage to subscribers of Mobile Money Operators, MMOs, to the maximum limit of N500,000 through the Pass-Through Deposit Insurance Framework. “As provided for in the NDIC Act 2006, when insured financial institutions fail, depositors of Deposit Money Banks (DMBs), Non-Interest Banks (NIB) and Primary Mortgage Banks (PMBs) are reimbursed up to a maximum limit of N500,000, while the maximum insured coverage for depositors of Microfmance Bank (MFBs) is N200,000. However, the insured limits are periodically reviewed by the Board of the Corporation to ensure that majority of depositors are covered.”

He noted that as at 30th June, 2019, the corporation received a total number of 35 petitions/complaints from banks customers on various issues such as ATM frauds, unauthorised funds transfers, cheque related issues and much more. “Investigations and mediation were carried out where necessary and customers were appropriately reprieved.

“In the area of capacity building, he said the NDIC was championing the establishment of a Center for DIS in Africa. The NDIC Academy and Learning Center was recently accredited by the Chartered Institute of Bankers of Nigeria as a major training hub for financial institutions.

“In August 2019, the corporation signed MoU on experience sharing and capacity building with the Korean Deposit Insurance Corporation (KDIC) and the Taiwan Central Deposit Insurance Corporation to further deepen the implementation of the DIS in Nigeria.”

– Nov. 8, 2019 @ 17:09 GMT |

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