RESERVE BANK GUARANTEE
Treasury steps in as VBS depositors queue for withdrawals
The committee also wants an expedited inquiry, and finalisation of a bill on a deposit insurance scheme to protect ordinary depositors
Treasury has provided the Reserve Bank with the power to guarantee retail deposits in VBS Mutual Bank — now under curatorship — of up to R100,000 per depositor, the bank announced on Wednesday. This doubles the previous guarantee of R50,000 per depositor and will greatly assist the thousands of poor people who invested their life savings in the bank. The bank said VBS curator Anoosh Rooplal would continue to collect on loans due to the bank. “Individuals and entities with loans at VBS Mutual Bank are expected to continue to make payments on these loans,” VBS said. The move comes as ordinary depositors have been having a hard time getting their money out of the bank. Parliament’s standing committee on finance has expressed deep concern over the way depositors are being treated and has urged VBS management, Rooplal, regulators and Treasury to intervene. Elderly pensioners and other people are reportedly queueing all night in bitter cold to withdraw up to the maximum of R1,000 allowed ...
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