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Business Reporter

The Deposit Protection Corporation has increased its cover limit by 100 percent from $500 to $1 000 per depositor per member bank. According to the company the new limit is effective from June 1, 2016 and does not apply to depositors whose banks were closed prior to the new limit coming into effect.“In the event of a bank failure, every client with a deposit balance equal to or below $1 000 is guaranteed to receive full compensation of the amount in the bank account at the time of bank closure provided one submits a duly completed claim form.

“Any outstanding deposit balance above the cover limit of $1 000 is payable through the liquidation process on a pro-rata basis.

“The increase in the cover limit will go a long way in protecting depositors, enhancing financial stability and public confidence in the country’s financial system,” the DPC said.

The corporation said that the new cover limit of $1 000 per depositor per member bank will protect 93 percent of depositors by number of accounts in full – in line with the Corporation’s Public-Policy Objective of ensuring at least 90 percent of depositors are covered in full.

Deposit protection is free for all bank depositors and no application is required as coverage is automatic upon opening a bank account with all banking institutions licensed by the Reserve Bank of Zimbabwe.

The Deposit Protection Corporation (DPC) has since 2012 paid over $3,11 million to 11 300 depositors of six banks that were closed since that year.

DPC has been making payments to depositors of Genesis, Royal, Trust, Interfin, Allied and AfrAsia under the Deposit Protection Fund (DPF).

An additional $27,5million has been recovered via the liquidation process.