Deposit Protection Fund has announced the start of paying the depositors of Mercantile Credit Bank which was closed by the Bank of Uganda.
According to DPF CEO, Dr Julia Clare Olima Oyet, the process started with account holders in the bank who had balances below shs1 million.
“DPF has commenced payment, through mobile money, of individual depositors with balances of shs1 million and below,” Oyet said.
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.
In this case, DPF pays depositors up to shs10 million.
Speaking on Monday, the DPF CEO said paying off account holders whose protected deposit is above shs1 million and up to shs10 million will commence on July, 1.
“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.”
Deposit Protection Fund says the process to pay depositors with company, joint and trust accounts will start on July, 8 through verification of documents that will be submitted to the DPF headquarters.
Oyet said company account holders are required to present a letter confirming the account name in Mercantile Credit Bank Limited, the names and signatures of the signatories to the account, a registered board resolution indicating the bank account to which the deposit should be paid, certificate of incorporation and location of the company, Memorandum and Articles of Association and copies of the valid original National Identification Cards of the signatories and all the documents must be certified by URSB.
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.”
