DPF to commence payment of protected deposits to depositors of the closed EFC Uganda Limited effective January 29, 2024

On January 19, 2024, in exercise of its powers under Sections 72 (1) and 12 (1) (d) of the Microfinance Deposit-taking Institutions (MDI) Act, 2003 as amended, the Central Bank placed EFC Uganda Limited under liquidation, revoked its license, and ordered for the winding up of its affairs.

In a press conference held at the Deposit Protection Fund (DPF) office, the Chief Executive Officer Dr. Julia Clare Olima Oyet announced to the public the roadmap of activities being undertaken by the Fund to ensure that depositors of the closed EFC Uganda Limited are paid promptly and efficiently.

While addressing the well-attended press conference, Dr. Julia Oyet underscored the importance of maintaining public trust in financial institutions. She emphasized DPF’s commitment to building the confidence of depositors by contributing to the stability of the financial sector. She noted that “The Deposit Protection Fund recognizes the significance of timely payouts to depositors and has dedicated resources to ensuring that this is achieved.” She added, “Our top priority is to ensure that depositors receive their funds promptly, in accordance with the law.

Dr. Julia Oyet (left) addressing the press conference. Center is Mr. Patrick Ezaga, Director Communications and right is Mr. Alan Lwetabe, Director Investments.

The key highlight of the press conference was the announcement of the commencement date for payment of protected deposits, a mandate of the Fund that is provided for in the Financial Institutions Act 2004, as amended.

Dr. Julia Oyet informed members of the press that:

Depositors who have protected deposits of up to UGX 100,000 would be paid using mobile money with effect from Monday, January 29, 2024 after verification of their National Identification Number (NIN) and mobile phone numbers.

All other depositors with balances of up to UGX 10,000,000 would be paid effective February 5, 2024, through an Agent Bank to be communicated.

Depositors with balances above UGX 10,000,000 will be paid by Bank of Uganda. The Bank of Uganda will inform depositors with more than UGX 10,000,000 of the arrangements for paying their deposits.

She further guided that all depositors who would be paid by the Agent Bank would be required to lodge a claim for payment by filling out the Depositor Claim Form that would be made available at the Agent Bank at no cost.