Details of how customers can reclaim up to N5m funds from defunct Heritage Bank can be accessed below.
NewsOnline Nigeria reports that the Nigeria Deposit Insurance Corporation (NDIC) has begun the liquidation process for Heritage Bank Plc following the revocation of the bank’s licence by the Central Bank of Nigeria (CBN).
Many customers of Heritage Bank woke up on Monday to the shocking news of the revoked licence of the bank by the CBN.
Before the regulatory hammer fell on Heritage Bank, the CBN said the bank had continued to suffer and had no reasonable prospects of recovery, thereby making the revocation of the licence inevitable.
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This decision, announced on Monday, was in accordance with Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA), 2020. The CBN has appointed NDIC as the liquidator of the failed bank.
NDIC spokesperson, Bashir Nuhu, assured depositors in Heritage Bank that those with insured amounts up to ₦5million will receive their funds through alternate 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.
For depositors with funds exceeding ₦5million, Nuhu explained that they would receive a liquidation dividend after the realisation of Heritage Bank’s assets and recovery of debts owed to the bank.
Hereunder are steps on how to reclaim up to N5m insured funds from the liquidated bank:
1. Visit the Nearest Branch: Depositors without an alternate bank account should visit the nearest branch of Heritage Bank with proof of account ownership, a verifiable means of identification (such as a driver’s licence, permanent voter’s card, or National Identity Card), their alternate account details, and their BVN for verification and subsequent payment of insured sums.
2. File Online Claims:
Depositors can also file claims online by visiting the NDIC website at [www.ndic.gov.ng/claims/claims](http://www.ndic.gov.ng/claims/claims). They should download and fill out the claims forms and upload the required documentation.
3. Verification and Payment of Creditors:
Creditors are advised to visit the nearest branch of Heritage Bank to file their claims or use the online platform. The NDIC emphasised that the payment process for creditors will commence immediately after all depositors have been paid.
4. Debtors’ Repayment of Loans:
Debtors who have not yet repaid their loans are instructed to contact the NDIC’s Asset Management Department (AMD) for further details, which can be found on the NDIC website.
The NDIC concluded its statement by reassuring the public of its commitment to the safety of 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.
NewsOnline Nigeria recalls that in 2012, the core investor in Heritage Bank, IEI Plc, through IEI Investments Limited, acquired the licence of the defunct Societe Generale Bank of Nigeria from CBN.
In December 2012, the Central Bank re-issued Societe Generale’s banking licence, but as a regional bank. Having acquired the banking licence, the new ownership re-branded the bank as Heritage Banking Company Limited and opened for business under the new name on March 4, 2013.