"N5m for Each Depositor": What Customers of Heritage Bank Can Get as CBN Revokes Licence

• Heritage Bank Plc's license has been terminated with immediate effect, according to a recent announcement from the CBN
• The apex bank said that the decision was triggered by the violation of Heritage Bank’s Section 12 (1) of BOFIA 2020
• The next step for customers of the bank who have expressed worry concerning their funds has been highlighted

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Central Bank of Nigeria (CBN) recently announced that it revoked Heritage Bank Plc's license effective immediately.

The stated purpose of this decision was to uphold a sound and steady financial system, in accordance with Section 12 of the 2020 Banks and Other Financial Institutions Act (BOFIA).

Heritage Bank's violation of Section 12 (1) of BOFIA 2020 led to the revocation, according to a statement signed by Hakama Sidi Ali, Acting Director, Corporate Communications.

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NDIC sends message to Heritage Bank customers as ATM, app stopped working after CBN revoked license

This has raised concerns for customers of the bank who fear that their monies would be inaccessible.

Nigerians have already begun to express difficulty in opening their apps and withdrawing money from the ATM.

According to a The Nation report, when your bank's license is revoked, the following occurs to customers fund:

1. Eligible depositors of the closed banks would be expeditiously notified by the Nigeria Deposit Insurance Corporation (NDIC) of the insured funds, after their eligibility has been confirmed on the bank's premises.
2. The insured limit for deposits made at any insured Deposit Money Bank (DMB), such as Heritage, is a maximum of N5,000,000 for each depositor.
3. This means that if a bank were to become insolvent or close by the Central Bank of Nigeria (CBN), you would receive N5 million back into your account.
4. Depositors would then need to obtain the necessary documentation in order to enable the verification and payment of their insured deposits, which would include proof of account ownership, valid identification, and an alternative bank account.
5. If a husband and wife, or any two or more individuals, have a joint account in the same covered bank in addition to their individual accounts, then each of the individually owned accounts and the joint account are protected separately up to the insured maximum sum.

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CBN revokes banking license of Heritage Bank, gives reasons

Only 17 banks will survive recapitalisation

Legit.ng reported that a new report from Ernst and Young, a United Kingdom-based accounting firm, says 17 out of 24 banks in Nigeria will meet the capital requirement from the Central Bank of Nigeria (CBN) if raised 15 times from its current N25 billion.

The report says options available to banks outside CBN requirements include mergers and outright acquisitions.

The report acknowledged the banks' financial soundness, which shows that Nigerian banks are safe and resilient as of 2023.

Source: Legit.ng