South African Reserve Bank on Monday announced that it was placing Ubank under curatorship with immediate effect due to corporate governance issues, failure to diversify business model, and inability to inject sufficient capital, among other issues.

The development was announced by SA Reserve Bank governor Lesetja Kganyago, who assured depositors that they will still have access to their moneys.

"KPMG South Africa will be responsible for Ubank with immediate effect," Kganyago said.

"There have been no indications that other South African banks have been negatively affected by Ubank's current situation," he added.

With around 4.7 million accounts, Ubank is a South African lender that primarily offers financial services to mine workers and their families.

The SA Reserve Bank governor pointed out that Ubank only has a capital adequacy rate of 3%, while it should be closer to 20%.

He however declared that Ubank remains open for business, remains highly liquid and will continue to grant loans.