In a statement issued on behalf of both parties, it was revealed that the bank would write off the applicable loans, refund customers and rescind judgments taken.
The bank would also remove judgment and adverse information listings from certain customers’ credit records and keep the NCR up to date with its activities.
The R20m would be paid into the National Revenue Fund.
“The NCR would like to thank African Bank for its co-operation and the constructive manner in which the negotiations to settle these matters were conducted.”
NCR secretary Lesiba Mashaba said the settlement related to allegations of reckless lending at an African Bank branch in Dundee, KwaZulu-Natal, and an investigation launched last year.
He said he could not give any more details because the allegations were never tested.