Breaking down National Treasury's plan to release R2.2 billion for Ithala depositors
The National Treasury has announced a major relief plan for Ithala SOC Limited subscribers, confirming that up to R2.2 billion will be released to repay depositors affected by the institution’s recent financial troubles.
Image: Facebook/Ithala Bank
Following a collaborative effort with the KwaZulu-Natal Provincial Government, significant announcements have been made regarding the repayment of deposits from Ithala SOC Limited.
Release of funds
The National Treasury will be releasing up to R2.2 billion to facilitate the repayment of depositors. This decision comes after thorough consultations, aiming to provide much-needed support to those affected by the current financial challenges faced by Ithala.
Payout start date
The payout process is set to commence on 8 December 2025. It is crucial for depositors to verify their details in order to ensure that payments are directed to the correct recipients. Verification is an essential step in safeguarding the funds.
Processing timeline
Once verification is completed, payments will be processed within approximately 2 days. This swift turnaround aims to alleviate any financial strain on depositors waiting for their funds.
Payout bank
First National Bank (FNB) has been appointed as the official payout bank for Ithala depositors. FNB will oversee the distribution of these funds, ensuring that the process is conducted in a secure and orderly manner.
Bank transfer
Importantly, depositors will not need to become FNB clients to access their funds. They can choose to transfer their payments to their bank of choice, thus maintaining their banking preferences.
No payouts at Ithala branches
It is essential to note that no payouts will be processed at any Ithala branches. All transactions will be facilitated through FNB, providing a clear and efficient channel for all depositors.
Contacting depositors
FNB will reach out to Ithala depositors via SMS. Before visiting a branch for further verification, individuals will be advised on the necessary documentation required, which includes:
- An identity document
- Proof of address
- Proof of an alternative bank account for the transfer
Branch visits
From December 8, 2025, depositors are encouraged to visit the nearest FNB branch for the verification process. This is a vital step in ensuring timely access to their funds.
Deadline for claims
Depositors will have until 2028 to claim their payouts, allowing ample time to complete the necessary procedures and validations.
Loan repayment reminder
While awaiting payouts, depositors and clients with existing loans at Ithala must continue to meet their loan repayment obligations. Payments should be directed to the dedicated Absa account number: 406-776-2302.
Collaboration for a smooth process
The National Treasury is working alongside the KwaZulu-Natal Provincial Government and the Prudential Authority, under the leadership of Honourable Premier Thamsanqa Ntuli, to ensure that this payout process proceeds smoothly and securely.
IOL