The Central Bank of Nigeria (CBN) has proposed a new guideline for the management of dormant and inactive accounts by banks in the country.
The guideline suggests that funds in accounts that have been dormant for up to 10 years be transferred into an Unclaimed Balances Trust Fund (UBTF) pool account, which will be invested in Treasury Bills.
The CBN hopes that this move will help to reduce the number of dormant accounts in the banking system and contribute to the development of the Nigerian economy.
The guideline also lists eligible dormant accounts and unclaimed balances, including current, savings, and term deposits, domiciliary accounts, prepaid card accounts, and more.
Any bank or financial institution that violates the provisions will face a penalty of no less than N2,000,000, and failure to adhere to the CBN’s directives regarding any breach will result in an additional daily penalty of N200,000 until compliance is achieved.
The CBN has called for inputs from stakeholders, which should be sent within three weeks, and assured that the inputs of experts and other concerned parties will be considered before the final guidelines are issued.
Article updated 6 days ago. Content is written and modified by multiple authors.
