JOHANNESBURG – VBS retail depositors will have access to their funds of up to R100,000 from Friday.

The South African Reserve Bank (Sarb) made the announcement of mechanisms to repay depositors on Monday afternoon, after VBS was placed under curatorship amid allegations of financial mismanagement.

Reserve Bank Governor Lesetja Kganyago said it is estimated that about 97% of the 22,700 VBS retail depositors will receive all their money.

“We are mindful that some retail depositors have larger amounts deposited in VBS”

Depositors were urged to be patient and refrain from rushing en mass to claim their funds, after an assurance from the Central Bank that their money is secure for the next three years.

VBS retail depositors can visit any Nedbank branch from this Friday where they will need to open an account.

This Nedbank account will be loaded with a balance equivalent to the amount of the guaranteed deposit at VBS Bank.

Kganyago said the R100,000 a day limit will no longer apply.

“Once the retail depositors have attained their new bank accounts, they can choose to leave their money in their new Nedbank account, withdraw all or parts of the funds at any ATM or Nedbank branch, or move the money to another bank account with any bank in South Africa.”

Kganyago also said the Reserve Bank responsibility is to protect VBS depositors and not municipalities.

He added that there was no guarantees that municipalities and other large businesses will receive their funds at this stage.

“Many municipalities had no business placing deposits with VBS. They knew they are breaking the law.”

Photo Credit- Mail & Guardian

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