People’s Bank makes compensation payments to ETI, The Finance and Swarnamahal Financial Services depositors

People's Bank has distributed Rs. 9,278 million in compensation payments to 69,078 depositors of The Finance Company, Rs. 3,338 million paid to 8,536 depositors of ETI and

Rs. 309 million paid to 773 depositors of Swarnamahal Financial Services as at July 20.

All payments were made via People's Bank's islandwide branch network, the bank said in a media release adding that this is under the scheme to compensate depositors of the three failed institutions.

This is after the Central Bank ( CB) appointed People's Bank as one of the state's representative banks to commence a programme to settle the compensation payments of the depositors of ETI, The Finance and Swarnamahal Financial Services.

Under this scheme, if a depositor's funds are lost a maximum compensation of

Rs. 600,000 per depositor will be paid through this insurance scheme. Accordingly, payments commenced with The Finance payments on June 2, ETI payments on July 25 and Swarnamahal Financial Services also on July 25.

“As these compensation payments are being made in the midst of the bank's regular banking services, the bank bears a great responsibility to ensure the safety of the regular customers as well. The bank has decided to take a time allocation approach as it is important to take precautions as a result of the current health situation and having won the trust of the public by making the compensation payments from inception while treating all individuals equally and fairly. In addition to this, as a bank that treats everyone in a humane manner, we have allocated a separate space for those individuals who go through many hardships to visit our bank branches. Most branches will be providing refreshments and comfortable chairs for the depositors who will be visiting to collect their compensation payments,” the release said.

“There are a lot of false stories on social media about the compensation payment mechanism. We responsibly state that stories such as collecting of unnecessary documentation, availability of applications only in English language and joint accountholders having to visit the bank to collect their compensation payments, are completely false. As the bank with the highest number of customers, widest branch network, significant portion of the country's financial wealth and with local and international awards, People's Bank will always stand by the people of the country helping them to reap the maximum benefits,” it said.

Under this scheme, if a depositor's funds are lost a maximum compensation of Rs. 600,000 per depositor will be paid through this insurance scheme.