Those cheques will not be paid or charged against the account because the action by the Central Bank to suspend the operations of the institutions will cause all accounts to be frozen at the date of suspension. Such cheques will be returned and usually will be marked “drawee bank closed”, or “refer to drawer”. This should not therefore reflect on the credit standing of the institution’s depositor. However, it is the depositor’s responsibility to make funds available to creditors who received cheques that were returned and did not clear through the depositor’s account because of the suspension of the institution.
Frequently Asked Questions
- What types of deposits are insured?
- Is the insurance protection increased by placing funds in two or more types of deposit accounts in the same institution?
- What methods of payment may the DIC use in meeting its obligations to the depositors of a failed institution?
- If two or more persons, for example a husband and wife, have, in addition to the individually owned accounts of each, a valid joint account in the same insured institution, is each account separately insured?
Did You Know?
- Misconception: The Deposit Insurance Corporation (DIC) is empowered to close a member institution. - Fact: A member institution licensed under the Financial Institutions Act, 2008 can only be “closed by or with the approval of The Central Bank of Trinidad and Tobago as a result of financial difficulties.”