The Central Bank of Nigeria (CBN) has issued new guidelines on the management of dormant accounts, unclaimed balances, and other financial assets in financial institutions across the country.
According to a report by Vanguard Newspaper, banks that disobey the new guidelines will face a minimum fine of N2 million as a penalty. In addition, a further daily penalty of N200,000 will be applied until full compliance. The apex bank said the guidelines were rolled out in response to the request of banks and other stakeholders for further clarification on the procedure for the management of dormant and inactive accounts by banks in Nigeria.
The guidelines require financial institutions to bear the costs of maintaining inactive and dormant accounts as well as contacting the customers, render quarterly reports on dormant accounts in a prescribed format to Banking Supervision Department and Other Financial Institutions Supervision Department, CBN, notify account owners in writing through agreed mediums such as email, text message, and letter immediately an account becomes inactive/dormant, reactivate dormant accounts upon request by the account owner or his/her legitimate representatives, and continue to reflect dormant account balances as deposit liabilities.
The Nigeria Interbank Settlement System (NIBSS) stated that as of December 2021, the number of bank accounts stood at 191.4 million, while the number of active bank accounts were 133.5 million owned by 122.3 million active bank customers. This indicates that 57.9 million inactive accounts were recorded during the period.
According to some analysts, the CBN's move is expected to improve accountability, transparency, and governance in the banking industry. It will also enable banks to free up resources that have been tied up in dormant accounts, which can be used to expand their operations and boost economic growth.
Financial institutions in Nigeria have been advised to comply with the new guidelines to avoid the penalties prescribed by the CBN.
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