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NDIC warns depositors against patronising wonder banks

April 30, 2015 : Godwin Isenyo, Kaduna 1 Comment

   

 

The Nigeria Deposit Insurance Corporation on Thursday in Kaduna warned depositors against patronising illegal fund operators, otherwise known as “wonder banks” across the country.
NDIC noted that the so-called wonder banks, who offered extra-ordinary interest rates,  were not licensed by the Central Bank of Nigeria.
Managing Director of the corporation, Alhaji Umaru Ibrahim, while delivering a speech at the 36th Kaduna International Trade Fair to mark the NDIC Special Day, said the agency would not carry the burden of banks ‘depositors’ plight in case of missing funds.
Ibrahim insisted that wonder banks (illegal fund managers) most at times disappeared after collecting customers money, leaving them in pains.
He urged Nigerians to stay clear of such banks.
According to him, the warning  has become imperative in view of the continued existence of such illegal fund operators in different forms and styles in various parts of the country.
He said, “I wish to seize this opportunity to once again advise members of the public against patronising illegal fund managers, also known as wonder banks, who offer extra-ordinary interest rates to deposits or investments only to disappear after collecting the deposits or investments.
“These illegal operators are not licensed by the CBN as deposit-taking financial institutions; and as such, are not under the NDIC insurance cover.
“People often approach the corporation to seek redress after falling victims. For the avoidance of doubt, the corporation wishes to make it categorically clear that only depositors of institutions that are licensed to collect deposits by CBN, such as  deposit money banks ,micro finance banks primary mortgage banks, and non interest/Islamic banks are under the NDIC insurance cover.”