The Corporation for Deposit Insurance (CODI) has announced that it will begin paying back qualifying depositors of Ditsobotla Primary Savings and Credit Co-operative Bank (DCB).
The South African Reserve Bank (SARB) had recommended that Finance Minister Enoch Godongwana place the DCB under resolution following financial challenges.
SARB reported that DCB had been operating at a loss. It was failing to meet regulatory requirements and unable to meet its financial obligations.
Prudential Authority rules on bank
“In addition, the bank’s governance, internal controls, systems, and risk management practices have proven to be inadequate. Despite heightened supervision by the Prudential Authority (PA), DCB did not implement the corrective actions requested by the PA,” said the SARB in a statement.
A resolution practitioner has now been appointed to take over the bank’s operations and ensure a smooth process. During this time, all DCB member accounts will be temporarily frozen.
The SARB admitted that this may cause inconvenience. But it emphasised that it is necessary to protect depositors’ funds.
CODI will reimburse each qualifying depositor up to R100, 000 of their protected deposits. This includes both savings held by individuals and stokvels in special savings accounts.
Other accounts being assessed
According to the statement, CODI is still reviewing whether other types of accounts also qualify for protection under the law.
The SARB also explained that depositors should visit 50 Bree Street in Lichtenburg on August 7 or 8 2025. This if for the purpose of identity verification, and they should visit between 9am and 4pm.
The depositors are required to bring proof of identity, proof of address, and a confirmation letter from their alternative bank.
“CODI can only transfer funds up to R100, 000 once the verification process has been successfully completed. The SARB will provide guidance on how balances exceeding the R100, 000 limit will be managed,” reads the statement.
Customers who had taken loans from DCB are still legally obliged to continue paying them off. Failure to do so may result in penalties and other sanctions.
