SARB marks CODI’s first year protecting depositors

SARB

3 minutes

The Reserve Bank has been celebrating the first anniversary of the Corporation for Deposit Insurance (CODI).

Established in April last year, CODI seeks to ensure that part, if not all bank depositors’ funds are protected in the event of a bank failure.

Funded by the banking sector, currently, CODI has a coverage limit of up to R100 000 and has been running for more than a full year now.

The Reserve Bank says its introduction has gone a long way in boosting financial stability in the country.

Dr Mampho Modise, deputy governor of the South African Reserve Bank (SARB), says CODI protects vulnerable depositors by insuring up to R100 000 per person, covering 95% of all deposits.

“Basically, what we’re doing is protecting the most vulnerable in our society and that would be the depositors. as you may be aware, CODI will be covering up to R100 000 per depositor per bank and this was calculated based on the amount of depositors that we worked with the banks that are there and it covers 95% of total deposits that are there, so this is a big step and I think the key is for depositors to be calm and know that they’re protected, so if there’s noise around a particular registered bank, they don’t have to run and try and get their money out, because CODI will be there to protect them, so that’s the key reason why we introduced CODI.”

Fortunately, the Reserve Bank has reported that in the year of its existence, that 2024-to-date, CODI did not have to be activated as there were no failures of registered banks, but says continuous work is being done to ensure that the banking system is ready for the worst eventuality.

#Did you know that you don’t have to register to be covered by South Africa’s deposit insurance? The cover provided by the Corporation for Deposit Insurance (CODI) is automatic for all qualifying depositors with accounts in qualifying products. Just ask your bank about accounts… pic.twitter.com/Scn6XGTTb5

— SA Reserve Bank (@SAReserveBank) March 6, 2025

“What we have been doing aggressively is communication, communication, communication. We’re working with the banks to make sure that their depositors know about CODI, they know that their banks are registered and that they’re covered. The key is for depositors to make sure that when they deposit with a financial institution, it is registered as a bank, and it forms part of CODI,” Modise stresses.

In the meantime, Deputy Governor Modise is urging banking customers to always ensure that they update their banking providers with any details, like changes in contact numbers or addresses. This, so as to ensure that depositors are kept fully in the loop by financial service providers, should a bank, they have dealings with run into difficulties resulting in the need to invoke the use of CODI.

🎉 CODI turns 1!
The Corporation for Deposit Insurance (#CODI) is celebrating one year since becoming operational — a key milestone in protecting depositors and strengthening SA’s financial system. If a bank fails, CODI will use the established Deposit Insurance Fund (DIF) to… pic.twitter.com/PtpEgTCuUi

— SA Reserve Bank (@SAReserveBank) April 3, 2025