Local customers of various banks in the country will now be assured of security of their deposits in case of insolvency of their account holding institutions.
This follows the establishment of the Deposit Insurance Corporation (DIC) which is set to be officially launched in a weeks’ time.
The corporation was set up by an Act of Parliament to provide insurance cover to deposit taking institutions with the sole aim of protecting depositors’ deposits.
Speaking to MBC on the side-lines of a business journalist training on the same, DIC Director General Chitani Chigumula, said the Deposit Insurance Act makes it mandatory for all licensed banks to be in a DIC scheme in which they pay premiums annually depending on the size of their deposits.
