Itai Muzondo in Gweru
GWERU – The Deposit Protection Corporation (DPC) says it is pleased with its service delivery record since its creation a few years ago.
Speaking to TellZim News after an awareness campaign in Gweru last week, DPC managing director John Chikura said the organisation had done a lot to build public confidence in the banking sector by protecting depositors' credit.
"When talking of confidence, it is in different levels. As for our side, we are talking of depositors or bank account holders who now need not to worry about losing all their savings in case their bank collapsed. We have assured the protection of their hard earned cash by following up on closed banks to pay up whatever amount depositors may had in there.
"As DPC we give a maximum of $1000 instantly and if your balance was above that, more funds will be given as we follow up on the liquidation progress with your bank. The process is not one-sided because we also help banks recover money from those who try to take advantage and run away with borrowed loans," Chikura said.
He said people were currently unwilling to deposit their money with banks owing to liquidity challenges in the country.
Chikura further said many people who have been affected by bank closures were not aware of services that the organisation offers.
"Many people have been affected by the closure of banks and many are not aware they can follow up on their money. We are trying to reach different communities and plans are there to help everyone," he said.
Deposit protection is a scheme established by government to protect depositors against the loss of their insured deposits placed with member institutions licenced to operate banking or finance business.
DPC gets its funding from quarterly premium levies collected from member institutions and by opening an account with a registered financial institution, a depositor's funds become automatically protected.
Banks that have collapsed of late are Kingdom (AfrAsia), Interfin, Allied, Trust and Royal.local