For thousands of frustrated Ithala Bank customers, the past few months have felt like an endless wait.
Now, at long last, there’s a solid plan on the table — and it comes with a new player.
The National Treasury has confirmed that First National Bank (FNB) will be the institution officially steering the long-delayed payout process.
It’s a move they say is meant to ensure that money reaches the right people quickly, safely, and without the chaos that could come from reopening Ithala’s struggling branches.
Why Ithala Customers Have Been Left in Limbo
The troubles at Ithala didn’t pop up overnight.
More than 250,000 customers have been locked out of their own funds since January, after the Prudential Authority approached the Pietermaritzburg High Court seeking the bank’s provisional liquidation.
According to the regulator, Ithala was both technically and legally insolvent, leaving it unable to protect deposits.
The liquidation request followed years of regulatory pressure and ongoing concerns about the institution’s financial stability.
To cushion the blow for depositors, Treasury has put up to R2.2 billion on the table to make sure people get their money back.
How the Payout Process Will Actually Work
Treasury says the long-awaited payout window officially opens on 8 December.
But there’s one key thing people must know: no payments will happen at Ithala branches. Everything runs through FNB.
FNB will be paying into any bank account, as long as the claimant is the main account holder.
To kick things off, the bank will send an SMS asking customers to verify who they are and provide a few essentials — their ID, a proof of address, and proof of another bank account where the money should land.
Once FNB confirms the details, the funds should reflect within about two days.
And there’s no need to panic about deadlines: depositors have until 2028 to claim what’s owed.
Support on the Ground in KwaZulu-Natal
To make the process smoother, FNB branches across KwaZulu-Natal will extend their operating hours, opening from 7:30 am to 5 pm specifically to help Ithala customers through the verification steps.
Jacqui O’Sullivan from FNB’s Corporate Affairs division says the bank wants people to feel confident and supported throughout this transition.
Whether someone prefers walking into a branch, using an ATM, or even receiving money via eWallet, she says FNB aims to keep everything secure and straightforward.
“Financial inclusion depends on trust,” she explained, adding that the goal is for every Ithala customer to feel safe reclaiming what belongs to them.
What About People Who Still Owe Ithala Money?
There’s one detail that might surprise some customers: anyone with an outstanding loan at Ithala still needs to honour those repayments.
The liquidation and payout process doesn’t wipe existing debt.
Treasury also confirmed that it is coordinating closely with the KwaZulu-Natal provincial government to keep the entire operation fair, secure, and transparent.
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