Sundaymail Editor
Online Reporter
The Deposit Protection Corporation (DPC) is now providing guarantees for foreign currency deposits held in Nostro Foreign Currency Accounts (FCAs).
DPC is a statutory body established to ensure depositors do not lose funds when banks close or are put under administration.
In a statement on Tuesday, DPC chief executive officer Mr Vusilizwe Vuma said systems have been put in place to ensure that those whose free funds are in banks are insulated against any eventualities.
“Following the separation of depositor accounts into Zimbabwe Dollar (ZWL) and Nostro FCAs, there has been no explicit deposit protection of Nostro FCAs in Zimbabwe.
“The deposit protection maximum cover level shall be US$1 000 per deposit per banking institution and US$500 per deposit class per deposit-taking micro-finance institution with effect from January 1, 2022,” Mr Vuma said.
He, however, said those who lose their deposits before the FCA scheme kicks in will not be eligible for compensation.
The move is set to enhance confidence in the banking sector.
Online Reporter