Following an outcry over how depositors at South African based VBS Mutual Bank, which was placed under curatorship in March, have been treated, the South African Reserve Bank (SARB) revealed that it has secured a guarantee from National Treasury for retail deposits up to R100 000 per depositor.
Retail depositors refers to individuals, funeral schemes, burial societies, savings clubs and stokvels.
SARB said it will announce details on the repayment of retail deposits on Monday 9 July at 2pm.
In a statement the central bank said: “On 11 March 2018, the SARB announced that all retail deposits up to the amount of R50 000 per depositor will be guaranteed. With concurrence of the Minister of Finance, the guarantee has been increased to R100 000 per retail depositor, in line with the proposals in the discussion paper on the deposit insurance scheme published in May 2017”.
It added that the curator – SizweNtsalubaGobodo – will continue to collect loans due to VBS Mutual Bank and appealed to individuals and entities with loans at the bank to continue to make payments on them.
It also asked retail depositors to remain patient as SARB continues to prioritise their best interests.