National Treasury has intervened to safeguard thousands of Ithala Bank clients, unlocking up to R2.2 billion to ensure all affected depositors are repaid. The payout process is scheduled to begin on 8 December.
Depositors will first need to complete a verification process at any FNB branch after receiving an SMS with instructions. Once verified, payments will be made within 48 hours. Although FNB has been appointed to manage the payouts, beneficiaries will not be required to open an account with the bank and may transfer their funds to any institution of their choice.
No payments will be processed at Ithala branches, and depositors will have until 2028 to claim their money.
Treasury says it is working closely with the KwaZulu-Natal government and the Prudential Authority to ensure the process runs efficiently and securely.