The Nigeria Deposit Insurance corporation (NDIC), on Sunday, announced the commencement of a verification exercise for insured depositors of Peak Merchant Bank in-liquidation towards payment of their insured sums.

The move is in line with its mandate of deposit guaranty and reimbursement of depositors in the event of bank failure.

The Director, Communication and Public Affairs, NDIC, Bashir Nuhu, who stated this in a statement, noted that the verification exercise would enable depositors of the defunct bank to cross-check and ascertain their account information as well as balances with the bank as at closure.

The release stated further that the process was a prelude to the payment of insured sums to such depositors.

“Depositors are therefore enjoined to visit the bank’s old premises or the Corporation’s office nearest to them with proof of account ownership and verifiable means of identification for the exercise”, Nuhu added.

He added that the insured sum is the first and mandatory payment that depositors are to receive, up to specified limit, if a bank fails. Depositors are paid amounts in excess of the insured sums subsequently, as liquidation dividends from proceeds of the closed bank’s assets as realised by NDIC as liquidator.

The corporation has liquidated no fewer than 425 financial institutions in the last 30 years of operations, as at December 2019.

A breakdown of the liquidated 425 institutions indicates that 51 were deposit money banks (DMBs), 325 microfinance banks (MFBs) and 51 primary mortgage banks (PMBs).