Access, Zenith, Others Begin Request for New KYC Updates on Bank Accounts as CBN Deadline Nears
- In line with a new directive by the CBN, banks and financial institutions have begun requesting new KYC updates from customers
- Banks have asked customers to quickly provide new updates on their accounts or have them blocked after January 31, 2024
- Customers are to provide fresh details about their NIN or BVN attached to their bank accounts
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigerian banks, fintechs, and other financial institutions have begun sending requests to customers to update their Know-Your-Customer (KYC) levels following a deadline by the Central Bank of Nigeria (CBN) for banks to update key details in customers' accounts.
In-app messages from financial institutions asked their customers to provide new KYC updates or have their accounts frozen in line with the directives of the CBN.
Source: UGC
Financial institutions send requests for KYC updates
In one of the messages seen by Legit.ng, one of the financial technology companies asked customers to provide fresh details to authenticate their identity or their accounts would be downgraded.
The apex bank gave January 31, 2024, as the deadline for bank customers and financial institutions to provide updated accounts with the National Identity Number (NIN) or Bank Verification Number (BVN).
Three million bank accounts at risk
Legit.ng reported that about three million bank accounts may be blocked as the deadline for all bank accounts to have a BVN or NIN draws close.
The CBN, on December 1, 2023, issued a circular to all commercial, merchant, non-interest, payment service banks, financial institutions, and mobile money operators, asking that the BVN or NIN attached to and associated with all accounts and wallets be electronically revalidated by January 31, 2024.
BusinessDay reports that the CBN directive mandated that from March 1, 2024, all funded accounts or wallets without BVN or NIN should be placed on 'Post No Debit or Credit,' and no further transactions would be carried out on those accounts.
A report by Enhancing Financial Innovation and Access says that 52% of unbanked adults have NINs, and 5% of banked adults are without BVN or NIN.
The National Bureau of Statistics (NBS) said that the total number of bank accounts in Nigeria as of 2021 was about 19.4 million, out of which 133.5 million were active.
Nigerians react to CBN's changes to savings, current accounts
Legit.ng reported that Nigerians on social media have expressed mixed feelings about the directives by the Central Bank of Nigeria (CBN) mandating bank account holders to link their accounts to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) for all bank transactions beginning March next year.
The apex bank, in a circular signed by its director of the Payment System Management Department, Chibuzo Efomi, and the director of the Financial Policy and Regulation Department, outlined the implementation of the new policy.
The CBN directed banks that, effective immediately, new Tier 1 accounts or wallets can only be opened with BVN or NIN.
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Source: Legit.ng
