Second phase of TFC depositor payments to start from 2 July

Monday, 29 June 2020 00:37 - - {{hitsCtrl.values.hits}}

Payments will be at 63 branches of People’s Bank countrywide
In first stage 105,000 depositors paid compensation up to Rs. 600,000
In second stage 38,000 more to be paid

The second stage of compensation payments to The Finance Company (TFC) depositors will begin from 2 July, the Central Bank said recently.

Accordingly, such payments will be taken place at 63 branches of the People’s Bank islandwide. In terms of this compensation mechanism Rs. 600,000 is paid per depositor basis.

Under this second stage compensation to all the depositors confirmed by the TFC will be commenced from 2 July, the monetary authority said in a statement.

Upon cancellation of the finance business license of TFC by the Monetary Board of the Central Bank of Sri Lanka, compensation payments to the depositors/legal beneficiaries of depositors of the TFC from the Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS) was commenced on 7 June.

Accordingly, under the first stage of the payment mechanism, compensation payments to individual depositors who maintain only one account i.e. nearly 105,000 depositors in total were implemented. Under the second stage of the mechanism approximately another 38,000 depositors will be eligible to receive compensations.

The CBSL has taken all required measures to ensure that compensation procedure is implemented in an efficient and effective manner. The People’s Bank has been appointed as the Agent of the CBSL with a view to execute compensation program expeditiously.

The depositors of TFC are hereby requested to extend their maximum cooperation towards this compensation program by submitting originals of deposit certificates, identification details and other required documents.

In respect of joint accounts, minor accounts, deposits converted into shares and deposits maintained in the names of corporates and societies, deceased depositors and depositors living abroad, the instances where loss of original deposit certificate/pass book, the absence of required identification documents etc., it will be required to submit affidavits, special forms and confirmations obtained from TFC as specified by the People’s Bank. The depositors of TFC are kindly requested to abide by such instructions to make the compensation program a success.

Further details pertaining to the compensation to the depositors of TFC can be obtained from the following telephone numbers,

People’s Bank: 11 2481 594, 11 2481 320, 11 2481 612, 11 2481 703

Central Bank of Sri Lanka: 1112 398 788, 112 477 261