enca - 6 days ago

UPDATE | Ithala Bank to begin payouts from 8 December Estelle.Bronkhorst Tue, 12/02/2025 - 11:50 * Editor s note: This is a developing story. We will bring you updates as more information becomes available.DURBAN - The National Treasury has stepped in to protect thousands of Ithala Bank depositors, unlocking up to R2.2-billion to repay affected customers.The payout process begins on 8 December.Depositors must first be verified at any FNB branch after receiving an SMS with instructions.Once verified, funds will be paid out within two days.READ: Ithala Bank gets lifelineFNB has been appointed as the payout bank, but depositors won’t be required to open an account there and can transfer their money to any bank of their choice.No payouts will be made at Ithala branches, and depositors have until 2028 to claim their funds.Treasury says it’s working with the KwaZulu-Natal government and the Prudential Authority to ensure the process is smooth and secure.READ| Ithala bank | Bank fights resume operationsThe Reserve Bank’s Prudential Authority, Repayment Administrator Johannes Kruger, and Ithala have been back and forth in court over the entity s future.Since January, more than 200,000 Ithala customers have been blocked from their accounts after the Prudential Authority applied to have the institution liquidated, citing technical insolvency.Throughout the year, authorities have made a number of commitments to Ithala depositors.In May, National Treasury issued a guarantee of more than R2 billion to the bank s clients. At the time, KwaZulu-Natal Treasury expressed dissatisfaction with the suggestion that the provincial government, as Ithala’s shareholder, would be financially responsible for the guarantee.Now, however, it appears the two parties have reached common ground.The province s Finance MEC says Ithala requires the guarantee despite the cash flow.The operation to release funds to depositors will begin in a few days.READ: Ithala bank | Bank fights resume operationsThe provincial government says it will be issuing detailed instructions on payment points, required documentation and support for vulnerable clients.Ntuli says the province will also deploy teams to assist elderly and rural depositors.He hopes litigation will stop after the agreements take effect and that Ithala can be supported in rebuilding and obtain a banking license.Ntuli insists Ithala remains viable.eNCA s Nkosikhona Malinga-Mnisi reports.

Latest News

Hashtags:   

UPDATE

 | 

Ithala

 | 

begin

 | 

payouts

 | 

December

 | 

Sources