CBN's Directive on Dormant Accounts and Unclaimed Balances: What You Need to Know
The Central Bank of Nigeria (CBN) has issued a new directive to banks and financial institutions regarding dormant accounts and unclaimed balances. According to a circular released on Friday, signed by the acting Director of the Financial Policy and Banking Regulation Department, John Onojah, these accounts and balances that have been inactive for at least 10 years will now be transferred to a dedicated account known as the Unclaimed Balances Trust Fund Pool Account (UBTF Pool Account).
Key Points of the Directive:
1. Transfer of Funds:
- Dormant accounts and unclaimed balances inactive for over 10 years will be transferred to the UBTF Pool Account.
- The CBN will maintain detailed records of the beneficiaries of these unclaimed balances.
2. Investment of Funds:
- Funds in the UBTF Pool Account may be invested in Nigerian Treasury Bills (NTBs) and other government securities approved by the Unclaimed Balances Management Committee.
3. Exemptions:
- Accounts and balances under litigation or investigation are exempt from this directive.
4. Refund Process:
- Beneficiaries can request refunds of their principal and any interest accrued from the invested funds.
- The CBN is required to process these refunds within 10 working days of receiving the request. If more time is needed, a notice explaining the delay will be provided.
Implications for Account Holders
This directive ensures that dormant funds are actively managed and potentially earn returns through investments in government securities. However, it also places the onus on account holders to be aware of the status of their accounts and initiate refund requests when needed.
For more details on this directive and how it may affect you, stay tuned to our updates at RantHqBlog.com.