CBN announces plans to build new office to manage dormant account funds

The Central Bank of Nigeria (CBN) has launched plans to create a special office to manage dormant accounts and unclaimed balances.

This is stated in a recently published document, “FAQ – Guidelines on Dormant Accounts and Unclaimed Balances – issued by the central bank.

It is worth recalling that the CBN had earlier disclosed that it could invest funds from Dormant Accounts, unclaimed balances in Treasury Bills (TBI) and other government securities.

To this end, the apex bank revealed plans to set up an office to oversee the management of the fund.

“The CBN will establish a special office for this purpose. The office will be supervised by a Management Committee.”

The apex bank also revealed that they will waive interest from invested funds after the reactivation of the account.

According to the central bank, it will manage the funds in trust, returning the principal and accrued interest to the beneficiaries within ten working days of receiving the repayment request from the financial institution.

The FAQ document reads: “Interest payable shall be fixed at a rate to be determined by the CBN from time to time. For non-interest bearing banks, profit and loss on unclaimed balances shall be determined by the CBN from time to time.

“Bank Tabungan Negara will return the principal and interest on the invested funds to the beneficiary no later than 10 (ten) working days from the date the return request is received from the Deposit Insurance Corporation.”

The CBN also noted that financial institutions are required to notify customers immediately and quarterly when their accounts become dormant or inactive.

Reactivating an inactive account involves the account owner completing a reactivation form at their respective financial institution, providing proof of ownership and valid identification.

For unclaimed balances, financial institutions must transfer the funds to the CBN after the funds have been inactive for ten years.

By: Babajide Okeowo

CBN post reveals plans to create new office to manage dormant account funds first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.