Nigerian banks, their customers, and other relevant stakeholders have expressed concerns over the Central Bank of Nigeria’s (CBN) proposed policy aimed at sweeping up funds trapped within dormant bank accounts. According to the concerned parties, the policy could have unintended and unexpected consequences on the banking sector if pushed ahead.
The Central Bank had earlier released a guideline explaining the policy and how the plan was for banks and other financial institutions to send monies in accounts that had lain dormant for a period of up to 10 years into an Unclaimed Balances Trust Fund account. According to Chibuzor Efobi, the Director of the Financial Policy and Regulation Department of the central bank, the release of these guidelines was made in response to requests from financial institutions for CBN to make clear the modus operandi for the management of inactive accounts.
So far, eligible accounts and assets that fall under the domain of the move include all local currency accounts (current, savings, and term deposits), domiciliary accounts, share purchases and mutual investments, prepaid card accounts and wallets, unclaimed salaries, commissions, and bonuses.
