After Taking Over 20 Million Accounts, CBN Speaks on Imposing Reactivation Fee
- The Central Bank of Nigeria has instructed banks not to charge clients for account reactivation
- This came after it recently directed them to transfer balances that have remained in the dormant account
- Approximately 6.81% of all bank accounts were dormant as of the end of first quarter 2024, or 19.799 million
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) has directed banks not to impose fees on customers for reactivation of accounts that have been dormant for up to 10 years.
Source: Getty Images
This comes as the apex bank directed them to transfer balances that have remained in the dormant account, estimated to be not less than N20 trillion to the Unclaimed Balances Trust Fund (‘UBTF) pool account.
BusinessDay reported that UBTF Pool Account means the account designated in CBN for warehousing the unclaimed balances in eligible accounts.
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
Banks and other financial institutions can now apply the updated rules on the "Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria," which were released by the CBN last week.
Data from the Nigeria Interbank Settlement System (NIBSS) showed that as of the end of the first quarter of this year, there were 19.799 million dormant bank accounts, or 6.81 percent of all bank accounts nationally.
Inactivity is one of the factors that cause an account to go dormant. Consumers may cease using their accounts for non-personal reasons, such as moving, switching banks, or just realizing they no longer need the account.
Economic hardship is another factor, as it can result in a decline in banking activity. Individuals who are struggling financially might not have enough money to maintain their accounts open.
Some consumers create several accounts for various uses, and if those accounts are not connected to automatic transactions, they may eventually forget about some of them.
The directions provide that the CBN will handle these money by opening and maintaining a specific "UBTF Pool Account" and by keeping thorough records of the beneficiaries connected to the unclaimed amounts kept in the UBTF Pool. Account.
CBN predicts new Naira
Legit.ng reported that the Central Bank of Nigeria (CBN) expects the naira to appreciate in the foreign exchange markets driven by better crude oil production and exports.
The apex bank stated this in its latest report titled "Macroeconomic Outlook: Price Discovery for Economic Stabilisation".
According to CBN, the rise in crude export will help bring more forex into the market, reduce depreciation pressures, and strengthen the naira.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
