MASAKA CITY, May 5, 2025 – The Deposit Protection Fund of Uganda [ DPF ] is struggling to trace the rightful owners of millions of shillings in unclaimed deposits left behind by at least two liquidated commercial banks.
The banks in question, EFC Uganda Limited and Mercantile Credit Bank Limited, were closed by the Bank of Uganda after failing to meet the minimum capital requirements.
According to Patrick Ezaga, Director of Communications at the DPF, the Fund is currently holding substantial sums meant for former depositors of these banks. However, despite ongoing efforts, many account holders remain untraceable.
Following the liquidation of EFC Uganda Limited, and Mercantile Credit Bank Limited, the Central Bank assured the public that all depositors with balances of less than Shs 10 million would be compensated promptly through the DPF. Although the Fund obtained customer records from the defunct institutions, inconsistencies in account details and outdated contact information have made it difficult to reach the affected depositors.
“We were prepared to pay out all verified depositors within one month of the liquidation, but about 5 percent have either not filed claims or are completely untraceable,” Ezaga revealed during a recent media engagement in Greater Masaka.
He attributed the problem to clients failing to update their contact information with their banks, making follow-up efforts challenging. He also noted that some depositors may be disinterested in making claims, believing the amounts are too small to be worth the effort.
The media engagement was part of DPF’s ongoing efforts to raise public awareness about its role in Uganda’s financial system. The session focused on educating journalists about the Fund’s mandate, the importance of deposit protection, and how accurate media reporting contributes to financial sector stability.
“Accurate and factual reporting on deposit protection builds public trust in our financial institutions,” Ezaga said. “The DPF remains committed to working closely with the media to promote transparency and public education.”
Journalists welcomed the initiative, noting the importance of improving public understanding of deposit protection schemes. Similar outreach activities have been conducted in other regions to further bolster public awareness and trust.
Ezaga also urged the public to always use regulated financial institutions and to keep their personal banking details up to date to avoid challenges in the event of bank closures. He warned against transacting with unlicensed or unregulated financial institutions, urging the media to help disseminate this crucial information.
Under the Financial Institutions Act, the Bank of Uganda is empowered to appoint the DPF as a receiver or liquidator of any licensed institution deemed insolvent or non-compliant.
All regulated financial institutions contribute to the Fund through an annual mandatory premium of at least 0.2 percent of their average deposit liabilities from the previous financial year. The DPF provides deposit insurance to customers of all deposit-taking institutions licensed by the Bank of Uganda.
However, many depositors, including individuals, companies, joint account holders, trusts, SACCOs, and investment clubs, have yet to make claims for their protected deposits.
https://thecooperator.news/bou-dpf-to-start-paying-efc-uganda-depositors-next-week/
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