The Deposit Protection Fund of Uganda (DPF) has started paying depositors of Mercantile Credit Bank Limited, which the Bank of Uganda placed under liquidation, revoked its license, and made an order for the winding up of its affairs with effect from June 18, 2024.
This development was confirmed by the DPF in a statement on Monday, June 24, 2024.
According to Dr. Julia Clare Olima Oyet, the Chief Executive Officer (CEO) of DPF, depositors with balances of UGX 1 million and below will receive their payment through mobile money.
“Please note that to receive payment through mobile money, the name on your National Identification Card must perfectly match that registered against your mobile money number,” Dr. Oyet stated.
She further noted that depositors with balances of over UGX 1 million up to UGX 10 million who submitted accurate National Identification Numbers (NINs) shall start receiving their money on Monday, July 1, 2024, and that the money shall be made through Stanbic Bank, Lugogo Branch.
Oyet said that depositors ought to visit the bank after receiving an SMS message and are expected to present a legitimate original national ID to the bank.
Additionally, she noted that the fund shall, with effect from Monday, July 8, 2024, start receiving and verifying documents for company, joint, and trust account holders.
The ED asked the depositors in question to submit their documents to the DPF Office at AHA Towers, Plot 7 Lourdel Road, Nakasero in Kampala.
She emphasized that all depositor groups would receive their protected deposits paid to them, less any outstanding loans or other bank commitments.
However, according to Oyet, in accordance with Section 105 of the Financial Institutions Act 2004, as amended, the Bank of Uganda will handle the payment of deposits exceeding UGX 10 million.
DPF was established by the government of Uganda with a mandate to pay depositors a protected limit if their financial institutions were closed by the Bank of Uganda. The current protected limit is UGX 10 million.
