Deposit Protection Fund Chief Executive Julia Clare Oyet says, the time has come for the fund to have a review of the fund’s deposit insurance limit policy, in order to cater to its growing needs and adapt to the current economic times.
The fund’s policy review was last carried out in 2019 when the protection threshold was lifted from Shs3 million to the current 10 million.
This comes at a time when the fund is in the process of paying more than a billion shillings to depositors of Mercantile Credit Bank which was closed by Bank of Uganda last week.
Last week, in the exercise of its powers under Sections 99 and 17 (b) and (f) of the Financial Institutions Act, 2004, BoU placed Mercantile Credit Bank Limited under liquidation, revoked its license, and made an order for the winding up of its affairs with effect from June 18, 2024.
The Deposit Protection Fund is mandated to pay depositors a protected limit in the event that their financial institution is closed by the Bank of Uganda.
“This payment shall be made through Stanbic Bank Lugogo branch during working hours. Depositors should go to the bank after receipt of an SMS notification and should present valid national IDs to the bank.”
On the other hand, joint account holders are required to present copies of their valid national IDs for the signatories, a resolution signed by all account holders indicating the preferred mode of payment.
“Trust account holders are required to present the registration number of the trusted deed if it is registered and for the unregistered one, for Ugandans, the national ID and identification number issued by government or passport will be required.”