By Azania Post Reporter
THE Deposit Insurance Board (DIB) which is the liquidator of five closed banks in Tanzania will start refund depositors and creditors in March this year, it has learned.
Speaking in an interview, the DIB director Emmanuel Boaz said they are at final stages of verifying all accounts belongs to individuals and corporate in the closed banks.
The closed banks are Covenant bank for Women (Tanzania), Efatha Bank, Njombe Community Bank,Covenant bank for Women (Tanzania), Efatha Bank, Njombe Community Bank
"We have reached at least 70 percent of verification exercise, it is my hope that within March this year the DIB will start to announce for refunding procedures", he said.
Boaz said the verification took much time because the board wants to make sure that every depositor gets what he is supposed to be refunded disregarding the number of accounts.
There are some depositors who own more than two accounts in the same bank, but the law requires us to join his accounts and pay him not more than shillings 1.5million
He said there are some banks which its verification rate is 90 percent, they will receive their fund not more than March this year.
The reimbursable amount shall be in accordance with the limit provided under the Banking and Financial Institutions Act 2006, which is up to 1.5m/- per depositor.
The DIB director urged depositors and creditors of the troubled banks to remain patient as the liquidator puts arrangement to handle their affairs.
Asked on reasons which set reimbursement at shilling 1.5million, he said the amount was set because most of the customers do not have huge deposit amount in their accounts.
"I can say 90 percent of depositors in all these banks do not have more than shillings 1.5 million in their accounts, so it is impossible to refund more than stated.
Early this year, the Bank of Tanzania (BoT) announced to revoke licenses of the said banks for failure to meet regulations, including raising working capital
According to DIB every customer of the troubled bank who will be refunded must adhere to the stipulated regulations.
They are needed to fill properly claim Form in duplicate which is available at the head office and all branches of the said bank.
Others are the depositor’s Account Identity Card and proper identification of the depositor namely the National ID, Passport and for Tanzania nationals, they may submit the Tanzania Voter Registration ID, Driver’s license or Introduction letter from Local Government Authority.
Every bank and every financial institution which is licensed to carry on banking business in the country is required by law to be a member of the DIB.