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) 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 to include responsibilities such as the resolution of failing or failed banks, judicial management 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 Act (Chapter 24:20), Building Societies Act (Chapter 24:02), People's Own Savings Bank (POSB) Act (Chapter 24:22), Infrastructure Development Bank of Zimbabwe (IDBZ) Act (Chapter 24:14) and Micro-finance Act (Chapter 24:29) such as commercial banks, merchant banks, building societies, discount houses, finance houses, deposit-taking micro-finance institutions, People's Own Savings Bank (POSB) and Infrastructure Development Bank of Zimbabwe (IDBZ). In the event of failure of a member institution, DPC will compensate depositors part or all of their funds that were in the closed member institution up to the maximum cover limit prevailing at the time of 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 (Chapter 24:20), Building Societies Act (Chapter 24:02), People's Own
Savings Bank (POSB) Act (Chapter 24:22), Infrastructure Development Bank of Zimbabwe (IDBZ) Act (Chapter 24:14) and Micro-finance Act (Chapter 24:29)..
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 institutions.
Q4: What is the deposit insurance protection limit?
A: Your eligible deposits are protected up to $1,000 (One Thousand United States Dollars) per depositor per member bank and $250 (Two Hundred and Fifty Dollars for deposit-taking micro-finance institutions which is paid immediately when a member institution has been closed. Any balance above the insurable limit will be paid through the liquidation a pro-rata basis.
Q5: Can I buy additional protection for my deposits if the amount is more than $1,000?
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 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 institution 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 closed or liquidated, the Corporation shall pay depositors who have lost their deposits.
Q11: What about the uninsured portion of the deposits?
A: After the payment of the insurable amount 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.
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 the prescribed limit per depositor per member institution which is paid immediately when a member institution has been closed.
Q13: Who do I contact for further information?
A: DEPOSIT PROTECTION CORPORATION (DPC)
Public Relations Department
Telephone: +263 242 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: +26 242 252337
Postal Address: Box 7390, Harare
Our Vision >
Protecting depositors to contribute to financial system stability by 2021.
Our Mission Statement >
To protect depositors, enhance public confidence and stability in the financial system by promoting sound business practices and speedy resolution of failed contributory institutions.
Our Values >
Accountability | Fairness | Teaming | Integrity | Excellence | Transparency
Operating Hours: Monday-Friday (8:00am - 4:30pm, GMT +2) | Closed on weekends and public holidays.
e: email@example.com | a: Evelyn House, 26 Fife Ave/Cnr Blakiston St, Harare | t: +263 242 250900-1; 252336; 251040-44 | f: +263 242 252 337 |
Copyright © 2017 Deposit Protection Corporation Zimbabwe. All rights reserved.