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Deposit Protection Fund commences payment of mercantile credit bank depositors

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he Deposit Protection Fund of Uganda (DPF) has commenced payment to the depositors of mercantile credit bank Limited which was closed by the Bank of Uganda last week.

In a statement issued by Julia Claire Oyet, CEO of DPF noted that the road map for payments of the protected deposits to joint, trust and company account holders has been published today.

She added, “in exercise of its powers under Sections 99 and 17 (b) and (f) of the Financial Institutions Act, 2004, as amended, the Bank of Uganda (BoU) placed Mercantile Credit Bank Limited under liquidation, revoked its license, and made an order for the winding up of its affairs with effect from June 18, 2024.”

“Accordingly, the Deposit Protection Fund of Uganda (DPF) wishes to inform the depositors of closed Mercantile Credit Bank Limited that payment of protected deposits to individual depositors shall commence on Monday June 24, 2024, using various payment mechanisms,” Oyet revealed.

Oyet further noted that the DPF appreciates the cooperation exhibited by the depositors and assures them that they shall all be paid up to the protected limit of UGX 10 million, less any obligations to the bank. Depositors with amounts in excess of the protected limit shall be handled by Bank of Uganda in line with Section 105 of the Financial Institutions Act 2004, as amended.

Mercantile credit bank Limited’s license was revoked last week and ordered to wind up its operations after Bank of Uganda noticed the institution’s failure to resolve its significant undercapitalization, poor corporate governance, and insolvency.

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