Depositors with VBS won’t get their money immediately

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The Reserve Bank has warned that it’s likely that some depositors with Limpopo based VBS Bank may not get their money immediately.

The announcement by the central bank comes after VBS was being placed under curatorship to address a growing liquidity risk.

VBS made headlines in 2016 when it granted former president Jacob Zuma a loan after he was ordered by the Constitutional Court to pay back part of the money for the Nkandla upgrades.

Registrar of Banks at the Reserve Bank Kuben Naidoo said, “Small depositors with deposits of less than 50-thousand rand should be able to access their money immediately it is likely that the curator will have to put in place a plan to manage the liquidity situation going forward. So it’s likely all depositors will not be able to get their money immediately, their curator will have to take the interest of creditors into account…”