The Deposit Protection Corporation (DPC) that has so far paid out $3,2 million out of $6,4 million to clients of failed banks, is uncertain of full payment to prejudiced depositors due to chaotic bank databases and client’s lack of knowledge of the compensation process.
DPC public relations manager Allen Masadziruma, told The Herald Business last week that reimbursements were progressing slowly due to lack of awareness by some clients who lost their money after the closure of several banks.
“We haven’t really moved away from $3,2 million, there hasn’t been much movement since last year. We are really not sure if we can even surpass $4 million because most of the depositors of failed banks are not aware of the process.”
He said the funds are available.
“Depositors only need to submit a claim form and reimbursements are paid within five days via respective banks or mobile phone transfers.”
Mr Musadziruma said all depositors from AfrAsia, Allied, Interfin, Royal, Genesis and Trust banks are still welcome to submit their forms.
It is compulsory for every banking institution in Zimbabwe to be a member of the DPC.
It commenced operations on July 1, 2003 as an independent statutory body established by Government to administer the Deposit Protection Scheme.
A deposit protection scheme enhances consumer protection in the event of bank insolvency. Since 2003, the DPC has compensated depositors of nine failed banking institutions: Century Discount House, Rapid Discount House, Sagit Finance House, Genesis, Royal, Interfin, Trust Bank Corporation, Allied and Afrasia.