People’s Bank, one of the leading financial institutions in the country, is a State-owned, highly-trusted and stable bank with the most number of customers and a large branch network a release from the bank said.
Having understood the Bank’s ability to serve the people, the Central Bank of Sri Lanka appointed People’s Bank as one of the State’s representative banks to commence a programme to settle the compensation payments of the depositors of ETI, The Finance and Swarnamahal Financial Services.
Every bank contributes 0.1% from its total deposits to this insurance scheme. As a result, this insurance scheme has collected a significant amount of funds. If a depositor’s funds are lost a maximum compensation of Rs. 600,000/- per depositor will be paid through this insurance scheme. Accordingly, payments commenced with The Finance payments on 02.06.2020, ETI payments on 25.07.2020 and Swarnamahal Financial Services on 25.07.2020.
Although initially the Central Bank of Sri Lanka transferred the funds to People’s Bank based on the order of payments to the depositors, at present the Central Bank has made arrangements to transfer the submit Rs.20,000 million to People’s Bank.
As at 30 July, the payments to the depositors are as follows.
Rs.9,278 million in compensation payments have been paid to 69,078 depositors of The Finance Company. Rs.3,338 million in compensation payments have been paid to 8,536 depositors of ETI. Rs.309 million in compensation payments have been paid to 773 depositors of Swarnamahal Financial Services.
As a State bank, People’s Bank has always represented the people of the country. On this occasion, the Bank stepped forward to help these distressed depositors and carried out the compensation payments in a transparent and trustworthy manner. However, with the aim of furthering their narrow political agendas ahead of the upcoming general elections, certain elements have started using social media to attack People’s Bank and the Government by sharing fake news posts.
It is the responsibility of People’s Bank to reveal the truth about these elements who are desperately trying to mislead the general public by painting the wrong picture about the compensation payments of the above organisations by spreading fake news.
Being a State bank, People’s Bank was appointed by the Central Bank of Sri Lanka to settle the compensation payments to the depositors. While all staff members of People’s Bank diligently carried out their duties by providing their fullest support, the Board of Directors has given the necessary leadership to achieve these goals in a trustworthy manner.
As the Central Bank of Sri Lanka, through the insurance scheme, has assigned us to pay the entire compensation amount, it is guaranteed that irrespective of whether the General Elections takes place or not the payments will be made to all depositors based on the time periods allocated.
The Bank has decided to take a time allocation approach as it is important to take precautions as a result of the current health situation and having won the trust of the public by making the compensation payments from inception while treating all individuals equally and fairly. In addition to this, as a Bank that treats everyone in a humane manner, we have allocated a separate space for those individuals who go through many hardships to visit our bank branches.
Most branches will be providing refreshments and comfortable chairs for the depositors who will be visiting to collect their compensation payments.
“We are a Bank that has a responsibility to the people of this nation and we must ensure that these depositors who have fallen into trouble by knowingly or unknowingly dealing with deceitful financial institutions do not fall into such difficult circumstances ever again.”
The recipients will be receiving a number of benefits and will be a proud stakeholder of a very stable financial institution with extensive financial capabilities.
This assures a greater level of transparency as the money will be handed over in the presence of both parties and therefore we believe there will not be any unnecessary complications although we must apologize for any inconvenience caused by this.
Initially, these compensation payments were made at 63 People’s Bank branches islandwide. However, when it was found out to be insufficient, it was subsequently expanded to all People’s Bank branches islandwide.
There are a lot of false stories on social media about the compensation payment mechanism.
“We responsibly state that stories such as collecting of unnecessary documentation, availability of applications only in English language and joint accountholders having to visit the bank to collect their compensation payments, are completely false.
As the bank with the highest number of customers, widest branch network, significant portion of the country’s financial wealth and with local and international awards, People’s Bank will always stand by the people of the country helping them to reap the maximum benefits.”
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