DURBAN - Thousands of Ithala Bank depositors can breathe a sigh of relief as the National Treasury intervenes with a R2.2-billion bailout to repay affected customers. The payout process is scheduled to commence on 8 December, offering a much-needed lifeline to those whose funds were previously inaccessible.
Here's what you need to know about claiming your funds:
- Verification is Key: Depositors must first be verified at any FNB branch. Keep an eye out for an SMS containing detailed instructions on how to proceed.
- Payout Timeline: Once verified, funds will be disbursed within two business days.
- FNB's Role: While FNB is the designated payout bank, you are not obligated to open an account with them. Funds can be transferred to any bank account of your choosing.
- No Branch Payouts: Important note: Payouts will not be processed at Ithala branches.
- Claim Deadline: Depositors have until 2028 to claim their funds, so don't delay!
The National Treasury is collaborating with the KwaZulu-Natal government and the Prudential Authority to ensure a seamless and secure payout process. This intervention follows months of uncertainty, during which over 200,000 Ithala customers faced blocked access to their accounts due to the Prudential Authority's concerns regarding the bank's solvency.
The situation has been fraught with legal battles between the Reserve Bank’s Prudential Authority, Repayment Administrator Johannes Kruger, and Ithala Bank itself. Throughout the year, authorities have made several commitments to Ithala depositors, including a guarantee of over R2 billion issued by National Treasury in May.
While KwaZulu-Natal Treasury initially expressed reservations about the provincial government's financial responsibility for the guarantee, it appears that a consensus has been reached. The Finance MEC has acknowledged that Ithala requires the guarantee despite its existing cash flow.
This payout operation marks a significant step towards resolving the Ithala Bank crisis and restoring confidence among depositors. Make sure you follow the outlined steps to claim your funds before the 2028 deadline!