Home News Finance Breaking: CBN To Take Over All Dormant Accounts For Treasury Bill Investments
FinanceNews

Breaking: CBN To Take Over All Dormant Accounts For Treasury Bill Investments

806

The Central Bank of Nigeria (CBN) has issued new directives to banks and financial institutions regarding dormant accounts. The CBN will now take over funds in these dormant accounts and reportedly invest them in treasury bills and other securities.

The announcement was made in a circular released on Friday by John S. Onojah, Acting Director of the Financial Policy and Regulation Department. The circular is titled “Guidelines on Management of Dormant Accounts, Unclaimed Balances and Other Financial Assets in Banks and Other Financial Institutions in Nigeria“. The guidelines were initially drafted in April but have now been finalised.

CBN TO TAKE OVER DORMANT ACCOUNT
CBN’s Directive on Dormant Accounts Management

 

The CBN instructed financial institutions to move funds that have been in dormant accounts for up to 10 years to the Unclaimed Balances Trust Fund (UBTF) Pool Account. The UBTF Pool Account is the designated CBN account for holding unclaimed balances from eligible accounts. The funds will be invested in Nigerian treasury bills and other approved securities. The principal and any interest accrued will be refunded to the beneficiaries within ten working days upon request.

To reclaim funds from dormant accounts, account owners must complete an “Asset Reclaim Form” at any financial institution branch. They must provide proof of account ownership, valid identification, proof of residence, and an affidavit confirming the information. Financial institutions will verify claims within ten working days and forward them to the CBN, which will process the refunds.

Note that dormant accounts are bank accounts that have remained inactive for a specified period, typically at least one year. This inactivity means there have been no deposits, withdrawals, or other transactions initiated by the account holder during that time.

The apex bank has claimed that the new guidelines for such accounts ensure transparency and efficiency in reclaiming funds. According to the directive, information on unclaimed balances will be made available on financial institutions’ websites, the CBN’s website, and through newspaper publications. The interest payable on unclaimed balances will be determined periodically by the CBN, and the CBN will also set the profit and loss ratio for non-interest banks.

This Guidelines supersedes the Guidelines on the Management of Dormant Accounts and Other Unclaimed Funds by Banks and Other Financial Institutions in Nigeria, issued in October 2015 and takes effect immediately, the circular stated.

 

Read AlsoNigeria’s FCCPC Hits Meta with $220 Million Fine For Data Use Violations 

Senator Ndume Declines Appointment as Senate Committee Chairman on Tourism

About The Author

Related Articles

NewsTravel

Chad Suspends Visas for US Citizens in Response to Trump’s Recent Travel Ban

Chad has announced the suspension of visa issuance to United States citizens,...

FinanceNews

Ghana Places INTERPOL Red Notice on Former Finance Minister Ofori-Atta

Interpol has issued a Red Notice for Ghana’s former finance minister, Ken...

Seyi Tinubu flying presidential jet
News

Tinubu’s Silence on Son’s Use of Presidential Jet Draws Contrast with Mongolian PM’s Resignation

President Bola Tinubu has been criticised over the apparent misuse of state...

Umo Join APC
NewsPolitics

Akwa Ibom Governor Eno Dumps PDP Following West Africa Weekly’s Report

Governor Umo Eno of Akwa Ibom State has officially dumped the Peoples...