MAIN FEA­TURES OF THE SCHEME

Weekend Argus (Saturday Edition) - - FRONT PAGE -

can be iden­ti­fied eas­ily (for ex­am­ple, sin­gle ac­counts and joint ac­counts), the scheme will pay out de­pos­i­tors within 20 work­ing days after a bank’s de­posit ac­counts have been closed. It may take longer for the scheme to pay out the hold­ers of ac­counts who can­not be iden­ti­fied eas­ily (for ex­am­ple, pooled ac­counts). Over time, the scheme should re­duce the time it takes to pay out all ac­count-hold­ers, and aim to pay out all cov­ered de­posits within seven work­ing days after a bank’s ac­counts have been closed.

• It will be com­pul­sory for all reg­is­tered banks to be­long to the scheme.

• The scheme will be con­sulted when­ever the Sarb re­ceives an ap­pli­ca­tion for a new bank­ing li­cence.

• The fol­low­ing rules are pro­posed with re­spect to de­posit cov­er­age:

– For­eign na­tion­als’ de­posits and for­eign-cur­rency de­posits held at domestic branches of South African banks will be cov­ered.

– De­posits will be cov­ered on a gross ba­sis. In other words, when cal­cu­lat­ing

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