Central Bank of Nigeria: Dormant account owners to receive interests on deposits invested in T-bills in 10 days
The Central Bank of Nigeria (CBN) will invest dormant account deposits in treasury bills, bonds and other securities, and owners of such accounts will receive their principals and interests within 10 days of request.
This was revealed in a circular entitled, ‘Guidelines on Management of Dormant Accounts, Unclaimed Balances, and Other Financial Assets in Banks and Other Financial Institutions in Nigeria,’ released by the CBN on Friday.
The CBN said where it is imperative to extend the timeline, a notice of extension must be communicated to the requesting bank stating reasons for the extension.
The apex further bank said it will open and maintain an account to be called ‘Unclaimed Balances Trust Fund (UBTF) Pool Account’ earmarked for the purpose of warehousing unclaimed balances in eligible dormant or inactive accounts.
The apex bank noted that it will maintain records of the beneficiaries of the unclaimed balances warehoused in the UBTF Pool Account.
Banks to bear cost of maintenance
Banks will bear the cost of maintaining inactive or dormant accounts as well as that of contacting the affected account owners, the CBN circular said.
This is contrary to a previous practice many years ago where the cost of maintaining dormant or inactive accounts was borne by account owners.
According to the circular, banks must now render quarterly reports on dormant accounts in a prescribed format to the Banking Supervision Department (BSD) and Other Financial Institutions Supervision Department (OFISD) of the CBN as applicable.
Banks or other financial institutions have also been mandated by the apex bank to notify account owners of any situation in writing through agreed mediums such as emails, text messages, and letters immediately accounts become inactive/dormant and thereafter on a quarterly basis.
They are also to “continue to reflect dormant account balances as deposit liabilities and such balances, where applicable, shall continue to earn interest until they are transferred to CBN.”
They must also maintain a register for funds transferred to CBN for reclaim and audit trail, and must also publish, on their websites, details of all dormant accounts, six months prior to their eligibility for transfer to CBN.
Reclaim of unclaimed balances
An account owner can reclaim his/her unclaimed balances by visiting any branch or office of the bank and complete an ‘Asset Reclaim Form’.
The account owner/beneficial owner will be asked to provide evidence of account ownership, valid means of identification, evidence of present place of residence, and affidavit on the accuracy of the information to reactivate the account.
But the interest payable on the unclaimed balances shall be at a rate to be determined by the CBN from time to time.
“The profit and loss ratio on the unclaimed balances for Non-Interest Banks shall be determined by the CBN from time to time,” the circular noted.
