The Deposit Protection Fund of Uganda has commenced payment to depositors of Mercantile Cred Bank Limited (in liquidation).
The Fund is a government agency that provides protection to customers of deposit-taking institutions licensed and regulated by the Bank of Uganda
Mercantile Cred Bank was liquidated on June 18, 2024, by the Bank of Uganda.
2,850 depositors were left affected. Of these, 94% had balances below Shs 1 million. 164 depositors had blanches above Shs 10 million.
Last Saturday, the government, through the DPF, commenced payment of depositors with balances below Shs 1 million.
While addressing the media in Kampala on Monday, the Fund’s Chief Executive Officer, Dr. Julia Clare Olima Oyet, said, “The Fund is in charge.”
Shs 1.39 billion will be paid out to protected depositors, while Shs 1.64 billion will go out to partially protected depositors. Payments are being made through Mobile Money. However, for one to qualify, the name on their national identity card must match that registered against their mobile money number.
According to Dr. Oyet, payments of the protected deposit to individual account holders whose protected deposit is above Shs 1 million and up to Shs 10 million and who submitted their National Identification Numbers (NINs), shall commence on July 1, 2024.
On the other hand, payments to company, joint, and trust account holders will commence on July 8, 2024.
However, payment of the protected deposits to all categories of depositors shall be made less any outstanding loans or any other obligations to the bank.
Dr. Oye said that payments of deposits in excess of the protected limit of Shs 10 million shall be handled by the Bank of Uganda. This is in line with Section 105 of the Financial Institutions Act of 2004, as amended.
Dr. Michael Lugemwa, the fund’s director in charge of finance, said that money is available for payments.
“We have the money,” he assured the depositors. “We are going to pay all depositors as long as there is an accurate record.”
