Deadline for Royal Bank claims

Deadline for Royal Bank claims
Published: 21 June 2018
DEPOSITORS of the defunct Royal Bank who are yet to submit their claim forms to the Deposit Protection Corporation (DPC) have up to the end of next month to do so after which deadline no insurance claim forms will be entertained.

In a public notice early this week, DPC chief executive officer Mr John Chikura advised Royal Bank's depositors who have not yet submitted their claim forms to do so by July 31.

'Notice is hereby given concerning the impending termination of compensation from the Deposit Protection Fund to depositors of Royal Bank Limited (in liquidation) by July 31, 2018.

"If a claim is not made within the prescribed period, the unclaimed protected deposit shall be forfeited in terms of section 38(6) of the DPC Act (Chapter 24:29) and all the rights thereto shall revert to the corporation," he said.

Mr Chikura said depositors of Royal Bank who have not yet lodged their deposit insurance claims were thus advised to file their claim forms on or before July 31.

Royal Bank was placed under provisional liquidation on February 2013 and subsequently placed on final liquidation on November 19, 2014.

Meanwhile, payments on the liquidation front would remain in force in accordance with the framework and parameters as provided in the Companies Act (Chapter 24:03) as read together with the insolvency Act (Chapter 6:04).

Last year, DPC announced that it had started taking legal action against shareholders and directors of banks whose institutions failed due to poor corporate governance.

Eight banks have collapsed in recent years due to alleged lack of corporate governance and corruption among other issues.

Banking institutions that have also failed recently include AfrAsia Kingdom (formerly Kingdom Bank), Tetrad, Interfin Banking Corporation, Trust Bank, Allied Bank and Genesis

The DPC is an independent statutory body established by Government in terms of the DPC Act (Chapter 24:29) to administer the Deposit Protection Scheme.

Among other benefits, the DPC guarantees compensation up to the cover limit for eligible deposits in the event of a bank failure or a contributory institution.

The deposit protection also reduces chances of panic withdrawals and bank runs thereby contributing to the stability of the financial sector and overall economic growth.

The corporation which has offices in Harare, began operating on July 1, 2003 and has since opened a regional office in Bulawayo to cater for various stakeholders including depositors in Matabeleland region.

- chronicle
Tags: Bank,


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