The Governor Bank of Uganda, Emmanuel Tumusiime Mutebile has called on customers of all financial institutions regulated by the Central Bank to submit all their customers’ National Identification Numbers (NINs) to help Government recover funds on accounts in case a bank collapses.
In a joint statement issued by the Central Bank and Julia Clare Olima Oyet, Chief Executive Officer, the Deposit Protection Fund of Uganda, the duo assured Ugandans that the requirement should not alarm them as it does not mean banks in Uganda are collapsing but the NINs are a requirement to secure all the monies on accounts across financial institutions.
The statement called on customers of all commercial banks, credit institutions and Microfinance Deposit-taking institutions regulated by Bank of Uganda to update their personal information with their respective financial institutions.
The Central Bank explained that the Deposit Protection Fund of Uganda requires this information in order to ensure timely and convenient payment of protected deposits to customers in the unlikely event of closure of a financial institution for outright liquidation.
“The Bank of Uganda wishes to assure the public that the financial sector is safe and sound. The requirement to provide the information highlighted above is to enable the DPF to effectively execute its mandate of providing insurance to customers of deposit-taking financial institutions regulated by Bank of Uganda as stipulated under the Financial Institutions Act, 2004 as amended,” read in part the statement.
Bank of Uganda also reminded depositors to promptly advise their respective bankers of any change in their personal information going forward.
The development comes at the time the 2017/2018 Annual Report and Financial Statements for the Deposit Protection Fund of Uganda (DPF) indicate that the total assets increased by Shs83 billion, from Shs500 billion to Shs583 billion registered as at June 30, 2017, and June 30, 2018, respectively.
The growth in assets was largely financed by ‘fund capital’ which increased from Shs460 billion in June 2017 to Shs538 billion in June 2018, on account of profits derived from investments and contributions from financial institutions.