Ithala Bank depositors to get payouts from December 8

The National Treasury, following consultations with the KwaZulu-Natal provincial government, said on Tuesday it will make up to R2.2 billion available to enable the repayment of depositors of Ithala.

The payout process will start on December 8, 2025. Depositors will first need to be verified to ensure payments go to the correct recipients. Once verified, payments will be processed within approximately two days.

More than 250 000 Ithala Bank customers have been in limbo since 2023, when the South African Reserve Bank’s Prudential Authority (PA) took control and froze all the bank accounts. The PA declared the bank insolvent and applied for a provisional liquidation.

First National Bank (FNB) has been appointed as the payout bank for Ithala depositors and will facilitate access to their funds. This arrangement is intended to ensure that funds are paid out in an orderly and secure manner.

As the largest concentration of Ithala customers is in KwaZulu-Natal, FNB said it is extending its operating hours in the province, to best support those affected customers. From 8 December to  December 31, 2025 FNB KZN branches will be open from 7.30am to 5pm.

Depositors will not be required to become FNB clients and may choose to transfer their funds to a bank of their choice.

Customers can advise FNB how they would like to receive their payments. FNB will make payments to any bank where the recipient is the primary account holder. An eWallet payment can also be facilitated and FNB will also assist with the opening of new FNB accounts for the payment should the customer request this.

“These Ithala customers have not had access to their funds since January this year and helping them is a priority for us. Through our safe and secure banking solutions such as eWallet and our extensive branch and ATM network, we will make this process as simple and easy as possible for customers to obtain their funds,” said executive for corporate affairs, Jacqui O’Sullivan.

Treasury said that no payouts will be made at Ithala branches.

Depositors will be contacted by FNB. This communication must be received before visiting abranch for verification. Depositors will be contacted via SMS with details of the requireddocumentation, which will include: an ID; proof of address; and proof of an alternate bank account where their money will be deposited.

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