Deposit Protection Corporation Zimbabwe | Protecting Your Deposits.

DEPOSIT PROTECTION CORPORATION

Protecting Your Deposits

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Frequently Asked Questions

  • Q1: Who is Deposit Protection Corporation (DPC)?

    A: The Deposit Protection Corporation (DPC) is a statutory body previously known as the Deposit Protection Board established on 1 July 2003 in terms of the Banking Amendment Act (2015) and Building Societies Act (Chapter 24:21)as read with Banking (Deposit Protection) Regulations, Statutory Instrument 29 of 2003.

     

    The Corporation assumed the new name in terms of the Deposit Protection Act [Chapter 24:29], No. 7/2011 which came into effect on 16 March 2012 which also resulted in the Corporation's mandate being expanded from being a paybox to that of a risk minimiser whose responsibilities now include resolution of failing or failed banks and liquidation of closed banks. The enhanced mandate has enabled DPC to effectively carry out its objectives in line with international best practice.

     

    The Corporation's primary objective is to provide deposit protection to depositors in deposit taking institutions licensed by the Reserve Bank of Zimbabwe under the Banking Amendment Act (2015) such as commercial banks, merchant banks, building societies, finance houses, discount houses and deposit-taking micro-finance institutions. In the event of a bank failure, DPC will compensate depositors part or all of their funds that were in the closed bank up to the maximum cover limit prevailing at the time of bank closure.

     

    DPC falls under the Ministry of Finance & Economic Development.

     

  • Q2: Which institutions are members of (DPC)?

    A: Membership is mandatory by law for all deposit-taking institutions registered under the Banking Act Amendment, 2015, Building Societies Act (Chapter 24:21) and Micro-finance Act (Chapter 24:29).

    • Currently membership includes all commercial banks, merchant banks, building societies, finance houses, discount houses and deposit-taking micro-finance institutions.
    • Deposits with POSB are currently not covered by the DPC. They are separately covered under the POSB Act (Chapter 24:22).
    • Deposits with Asset Managers are currently not covered by the DPC.
    • All member institutions can be identified by means of membership certificates in all banking halls, membership stickers on door entrances, ATM areas, ATM screensavers, membership signs on website homepages and mention of membership in all forms of advertising (radio, television, print and outdoor signage).  To view samples of proof of membership, please click here.

     

  • Q3: Must I apply or register for deposit insurance protection?

    A: No, you do not need to apply or register for deposit insurance protection by DPC. Deposit insurance is provided automatically for eligible deposit accounts placed with member banks.

  • Q4: What is the deposit insurance protection limit?

    A: Your eligible deposits are protected up to $500 (Five Hundred United States Dollars) per depositor per member bank which is paid immediately when a member bank has been closed. Any balance above the insurable limit of $500 will still be paid via the liquidation a pro-rata basis.

  • Q5: Can I buy additional protection for my deposits if the amount is more than $500?

    A: No. Deposit protection cannot be purchased as it is not a general or life insurance product. It is provided automatically by the Government through DPC.

  • Q6: Which types of deposits are eligible for protection?

    A: All types of deposits received by a contributory institution in its usual course of business are protected and include without being limited to the following―

    (a)    time/fixed deposits;  and

    (b)   demand deposits;  and

    (c)    savings deposits;  and

    (d)   interest accrued and/or payable on all deposits;  and

    (e)    shares in a building society (class B&C shares), other than capital shares, deferred shares or preference shares;  and

    (f)    any other liability or financial instrument as may be specified by the Corporation from time to time by notice in the Government Gazette.

     

    Qualifying deposits in individual, corporate and trust accounts in insured institutions are covered by the Deposit Protection Scheme.

  • Q7: Which types of products are NOT protected?

    A: All investment or funds that do not meet the criteria established in the definition of insurable deposits are not protected by deposit insurance and include the following―

    (a)   securities purchased by contributory institution on behalf of the depositor;  and

    (b)   interbank deposits;  and

    (c)   government deposits, local or foreign;  and

    (d)   a deposit that is not payable in Zimbabwe;  and

    (e)   contents of safety deposit boxes;  and

    (f)    unit trust/managed funds;  and

    (g)   debentures issued by a contributory institution;  and

    (h)   deposits of executive management, board members or shareholders of a contributory institution;  and

    (i)    negotiable certificates of deposit;  and

    (j)    bankers acceptances;  and

    (k)   repurchase agreements;  and

    (l)    capital shares;  and

    (m)  deposits deposited by other domestic or foreign banks on their own account;  and

    (n)   drafts or managers cheques issued to trade creditors;  and

    (o)   any other liability or financial instrument as may be specified by the Corporation from time to time by notice in the Government Gazette.

  • Q8: I have deposits in several member banks. Will all my deposits be added up for deposit protection purposes?

    A: No. Your deposits in different member banks are protected separately. The $500 deposit protection limit is applicable per depositor per member bank.

  • Q9: I have deposits in different branches of the same member bank. Will all my deposits be protected separately?

    A: No. Deposits held in different branches of the same member bank will be added together for deposit protection purposes.

  • Q10: In the event of a member bank failure, how do I make a deposit protection claim?

    A: When a member institution is placed under curatorship, closed or liquidated, the Corporation shall pay depositors who have lost their deposits.

    • DPC advises the insured depositors via electronic or print media  to collect claim forms from its offices or download from the website in order for them to be compensated.
    • Under normal circumstances, once a duly completed and certified claim form has been submitted together with supporting documents (copy national ID, valid passport or valid driver's licence), depositor is reimbursed within 14 working days from date of submission of a duly completed claim form. However, reimbursements can take take up to 3 weeks during periods when we experience high volumes of applications.
    • Payment is made either through mobile phone or bank transfers.

     

  • Q11: What about the uninsured portion of the deposits?

    A: After the payment of the insurable amount of $500 which is availed to depositors soon after a bank is closed, any balance above the insurable limit will still be paid through the liquidation process on a pro-rata basis.

     

    Liquidation entails the orderly disposal of assets of a closed bank and recoveries from outstanding loans. Proceeds realised will be used to pay off depositors (on a pro-rata basis) for any balance above the insurable amount of $500.

     

  • Q12: I am a non-resident of Zimbabwe. Are my deposits protected?

    A: Your place of residence or nationality does not affect deposit protection. Deposits placed with a member bank of DPC is protected up to $500 per depositor per member bank which is paid immediately when a member bank has been closed.

     

  • Q13: Who do I contact for further information?

    A:  DEPOSIT PROTECTION CORPORATION (DPC)

         Public Relations Department

         Telephone: +263 4 250900-1 / 252336 / 252460 / 251040-44 (available Mondays to Fridays from 8.00 am to 4.30 pm, GMT +2)

         Mobile Number : +263 716 801 310 (Voice/SMS/WhatsApp)

         Fax: +26 4 252337

         Email: info@dpcorp.co.zw

         Postal Address: Box 7390, Harare

         Please take a moment to like our Facebook page, Follow us on Twitter and subscribe to our Newsletter  for more frequent updates.

     

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