SARB to reimburse Ditsobotla depositors as resolution process begins

The South African Reserve Bank (Sarb) has initiated a resolution process for Ditsobotla Primary Savings and Credit Co-operative Bank Limited (DCB) following its placement in resolution on 1 August 2025.

This means qualifying depositors can expect to be reimbursed for their savings under the protection of the Corporation for Deposit Insurance (CODI), a subsidiary of the Sarb.

On Monday, the Minister of Finance placed DCB in resolution with effect from 1 August after the Sarb recommended the intervention to protect the interests of DCB’s depositors.

DCB has failed to meet regulatory requirements for an extended period, was operating at a loss and could not fulfil its financial obligations. In addition, the bank’s governance, internal controls, systems and risk management practices have proven to be inadequate.

Despite heightened supervision by the Prudential Authority (PA), DCB did not implement the corrective actions requested by the PA.

As part of the resolution strategy, a resolution practitioner has been appointed by the Sarb to oversee the transition and ensure that depositor interests are safeguarded.

CODI is expected to reimburse eligible depositors up to R100 000 for covered deposits, thereby providing some much-needed relief during this time. As legally mandated, every registered bank in South Africa, including DCB, is a member of CODI, which guarantees deposit insurance coverage up to R100 000 per depositor for both principal and interest on qualifying products.

For depositors of DCB, CODI’s coverage extends to individual special savings accounts and those held by stokvels. The organisation is diligently reviewing the bank's records to identify any additional products that might qualify for coverage under deposit insurance regulations.

Qualifying depositors are encouraged to verify their claims in person by visiting the DCB verification site at 50 Bree Street in Lichtenburg on Thursday, 7 August, and Friday, 8 August 2025, between 09:00 and 16:00.

For those who prefer to submit their documentation online, CODI has provided a digital option. It’s important to note that CODI can only transfer funds up to the R100 000 limit once the verification process is successfully completed. Further guidance from the Sarb will clarify how balances exceeding this limit will be managed.

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