A notable number of bank customers haven’t yet claimed $3.2million worth of compensation from The Deposit Protection Corporation (DPC). Lack of knowledge of such an arrangement and institution from the customer’s side is attributed to be the main reason why customers are not claiming their compensation. DPC public relations manager Allen Masadziruma said:
We haven’t really moved away from $3,2 million, there hasn’t been much movement since last year. We are really not sure if we can even surpass $4 million because most of the depositors of failed banks are not aware of the process.
The institution was created in 2003 to partly reimburse depositors in case a bank untimely seizes its operations. Currently, DPC is compensating up to $500 for each customer of Afrasia, Allied, Interfin, Trust, and Royal.
The DPC is thus a significant player in the financial sector as it provides a safety-net for the savings, banking and payments systems and ultimately safeguarding the sector’s integrity.
And since the institution’s founding, a dozen of banks failed and subsequently triggering an aversion and lack of trust in banks. Accordingly, if customers are made aware of the existence of a deposit protection scheme, perhaps they may regain their trust in banks and choose banks as their preferred place of keeping their money.
Banks and most importantly The Reserve Bank of Zimbabwe is therefore tasked to engage awareness campaigns to inform people about their ability to regain some of their lost money when a bank fails. The knowledge that their savings are protected gives depositors confidence in the banking system as a whole. If one bank has a problem, the deposit insurance scheme will reassure depositors in other banks that there is no need to panic.
How to claim your compensation?
Customers can claim compensation by easily filling out a claim form and wait for the money to be sent to them in a mere 5 working days into a bank account or mobile wallet.