PRETORIA - The South African Reserve Bank (SARB) governor Lesetja Kganyago on Monday announced that retail depositers who were using VBS Mutual Bank will be repaid amounts of up to R100,000 using Nedbank starting from Friday.
This follows a decision last week to secure guarantees from National Treasury of up to R100,000 per depositor for VBS Bank retailer depositors.
The guarantee doesn't cover municipal or corporate deposits.
Retail depositors will have three years to claim their deposits.
VBS Branches will not be able to provide cash withdrawal services as from Tuesday.
The bank was placed under curatorship by the Reserve Bank earlier this year after it was unable to pay depositors their money.
The bank has come under scrutiny after it was revealed that it was looted for over R1.5 billion by its own management.
The situation has left many people unable to access their deposits.
Kganyago said forensic investigation into possible fraud and malfeasance at VBS is still in progress.
"We expect the investigation to be completed by late August or early September," Kganyago said.
He said when the investigation is completed, the investigation report will be handed over to the local authorities.
VBS curator Anoosh Rooplal said the 2017 financial statements of the bank did not present an accurate account of the bank's financial position.
-African News Agency