Revealed: NDIC issues important update on KYC of bank customers

The Nigeria Deposit Insurance Corporation (NDIC) has asked bank customers to ensure their KYCs are up to dateThe corporation said this is essential in the event of bank failure so depositors can be reimbursedThe NDIC Managing Director, Bello Hassan, said the reasons some Heritage Bank customers are yet to be paid is due to name mismatchLegit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigeria Deposit Insurance Corporation (NDIC) has asked bank customers to ensure that their KYC details are up to date to ensure smooth transactions and prompt payment in case of bank failure.

The NDIC managing director, Bello Hassan, disclosed this at the 2024 NDIC Editors’ Forum.

NDIC asks bank depositors to update KYCs in their bank accounts
Credit: nairarates
Source: UGCNDIC reveals the importance of KYCThe NDIC boss stressed the importance of updated KYC in the Nigerian financial system.

He disclosed that some customers of the failed Heritage Bank are yet to receive their insured sums due to a lack of KYC and name mismatch.

Hassan added that the corporation was working to ensure that the insured deposits were paid, stressing that it is aware of some depositors who have yet to receive payments.

According to him, the development is due to reasons ranging from reconciling inconsistencies in Heritage Bank’s depositors’ database to the absence of accounts and name mismatch.

He said updating the KYCs will ensure hitch-free transactions with their banks and prompt reimbursement during a bank failure.

NDIC reveals why Heritage Bank customers are not paidLeadership reports that the NDIC helmsman said that the corporation has already initiated the process of debt recovery and realisation of investments and physical assets of Heritage Bank to ensure timely payment of the uninsured deposits.

He stated that depositors over the insured limit of N5 million will be paid via liquidating the bank’s assets and dividends.

“This orderly process, based on asset realisation and priority of claims, is essential in maintaining public trust in the banking system and promoting financial system stability,” he said.Haasan reassured depositors of the safety of their funds, saying that the NDIC has been responsible for promoting stability by ensuring that when banks fail, depositors are protected and their funds are reimbursed. 

NDIC lists steps to receive full paymentsLegit.ng earlier reported that the NDIC said it reimbursed 82.36% of the customers of the liquidated Heritage Bank with deposits below N5 million maximum insured deposit.

The NDIC’s director of communications and public affairs, Bahir Nuhu, disclosed this on Sunday, August 11, 2024, and said that the corporation achieved this via the use of BVN-linked alternative accounts of customers of the liquidated bank.

According to Nuhu, the NDIC began paying insured deposits of a maximum of N5 million per depositor within four days of the bank’s closure.

Source: Legit.ng