CBN Gives Instructions to Access, UBA, other Banks Customers on Dormant Account

• The CBN is interested in the funds in the dormant account and has issued new rules for recovering funds
• Customers of bank accounts that have been dormant for up to 10 years are now expected to follow the new process for recovery
• A dormant account is a bank account that has remained inactive for a period of at least one year.

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has issued new guidelines to help owners of dormant accounts and beneficial owners recover their funds that have been dormant for up to 10 years.

The guideline titled the Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria" mandates financial institutions (FIs) to transfer dormant balances to the Unclaimed Balances Trust Fund (UBTF) Pool Account after ten years.

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CBN said its decision aims to enhance transparency and efficiency in managing dormant accounts and unclaimed balances to curb potential abuses.

Legit.ng reported that there are about 21 trillion in the bank accounts of different financial institutions.

Dormant account refunds

Here is a breakdown of how to recover unclaimed balances from dormant account banks.

Recovery Process

First step: Account owners or beneficiaries must visit any branch of their respective FIs and complete an 'Asset Reclaim Form' to start the recovery process.

Second step: Claimants need to provide evidence of account ownership, a valid means of identification, proof of current residence, and an affidavit confirming the accuracy of the provided information.

Third step: Financial institutions must verify the claim within ten working days. Verified claims are then forwarded to the CBN's director of the banking services department.

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Next stage: The CBN will process the refund and transfer the unclaimed balance to the claimants' accounts within ten working days of receiving the request from the FI.

CBN final instruction

In the guidelines, CBN emphasised that partial claims are not permitted, demanding that the bank customer process their claims fully.

It added that the right to reclaim unclaimed balances is indefinite, and there is no need for account owners and beneficiaries to be worried.

CBN to make changes on interest rates on savings accounts

Legit.ng reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the bank would extend its monetary tightening position to control inflation.

The CBN boss said this in a recently published debut outlook, stating that the move is to mitigate some risks and address existing imbalances.

Some of the risks he cited included heightened inflation due to long-standing structural imbalances, which would extend monetary tightening and depressed growth forecasts.

Source: Legit.ng