Deposit Protection Fund starts paying out clients of defunct Mercantile Credit Bank
The Deposit Protection Fund (DPF) has today started paying out clients of the defunct Mercantile Credit Bank Ltd
This comes days after the Bank of Uganda revoked Mercantile Credit Bank’s license citing poor governance and capitalization.
Addressing the media in Kampala this morning, DPF Executive Director Julia Clare Olima Oyet said over Shs.3billion has been earmarked for the pay out and depositors with a balance of Shs1m and below have started receiving their cash via Mobile Money facility.
She also noted that individuals with a balance of Shs1 m and above up to Shs10m will be paid through Stanbic Bank with effective Monday July 1st, while those with joint accounts have been asked to submit their documents effective next month.
“This payout will cover a total of 2,850 affected depositors”, she told journalists.
The DPF is mandated to pay depositors a protected limit in the event that their financial institution is closed by the Bank of Uganda. The current protected limit paid by the fund is Shs10m.
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