By CHIMPREPORTS
By Happy Christine
As the financial landscape in Uganda experiences a seismic shift with the recent liquidation of EFC Uganda Limited by the Bank of Uganda, the Deposit Protection Fund (DPF) has stepped into action. The DPF, led by its CEO, Dr. Julia Clare Olima Oyet, held a press conference on Wednesday, January 23, 2024, unveiling the meticulous preparations underway to reimburse the depositors affected by the abrupt closure of EFC Uganda Limited.
Dr. Oyet disclosed that the DPF swiftly responded to the closure, having received a formal notification from the Bank of Uganda regarding the liquidation of EFC Uganda Limited and the subsequent revocation of its license. This pivotal information triggered the initiation of meticulous plans to streamline the payout process for the affected depositors.
During the press briefing, Dr. Oyet shed light on the distribution strategy, revealing that approximately 68% of depositors with balances under shs100,000, would receive their compensations through mobile money. Meanwhile, 30% of depositors with balances ranging from shs100,000 to shs1 million would be served through agent banks.
Addressing concerns raised by the 2% of depositors holding balances exceeding shs10 million, Dr. Oyet assured them that the Bank of Uganda would handle their compensation after the completion of the liquidation process. This move aims to instill confidence in all depositors, assuring them that their financial interests are being safeguarded amid the turbulence caused by the closure of EFC Uganda Limited.
Officials from the Deposit Protection Fund expressed optimism, asserting that by the conclusion of the entire process, a substantial 98% of depositors within its mandate would have received their compensations. This statistic underscores the commitment of regulatory bodies to efficiently address the aftermath of significant financial disruptions.
Detailed Payment Process Unveiled
Dr. Oyet delved into the intricate details of the payment process, providing a comprehensive timeline for disbursements. Depositors with balances up to shs100,000 are slated to receive their funds via mobile money starting from Monday, January 29, 2024. This phased approach is designed to ensure a systematic verification process, requiring depositors to authenticate their National Identification Number (NIN) and mobile phone number.
For depositors with balances up to shs10,000,000, a structured payout plan is set to commence on February 5, 2024, facilitated through an agent bank. The identity of the designated bank will be communicated to depositors, ensuring a transparent and well-coordinated compensation process.
To facilitate the seamless execution of payments through agent banks, the DPF emphasized the necessity for depositors to submit claims by completing the depositor claim form. This form, available at the specified bank, becomes a crucial document for processing compensations, adding an extra layer of diligence to the entire disbursement procedure.
Dr. Oyet reiterated the documentation requirements for individual account holders, emphasizing the need for valid national IDs for Ugandans, valid passports for non-Ugandans, and valid refugee numbers for refugees. Joint account holders were urged to present valid national IDs, while company or trust account holders were directed to submit a copy of the registration documents, a registered resolution specifying the payee, and the valid national IDs of the beneficiaries.
As the DPF collaborates closely with the Bank of Uganda, depositors affected by the closure of EFC Uganda Limited can take solace in the fact that the compensation process is being approached with thoroughness and transparency. This concerted effort seeks to not only remedy the financial fallout, but also restore confidence in the Ugandan financial sector, as it navigates these challenging times.
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