PUNCH
Banks and their customers have raised concerns over the Central Bank of Nigeria’s proposed plan to mop up funds from dormant accounts. While the proposal is not new, stakeholders argue that it could potentially have unintended consequences on the banking sector, reports Oluwakemi Abimbola
The bank account of a deceased man, Oluwanisola Yekini, has been dormant since he died in 2020. The quarrels among his polygamous family have prevented them from concluding the process that would give them access to the money in the account. They fight over who should get the money.
While Yekini’s eldest son feels that the funds in the account should automatically belong to him and has held onto his father’s death certificate (one of the required documents to access the account), his step-siblings know the account number and were seeking an equal share of the funds. Neither of the parties knew who their late father’s next of kin is or the amount of money in the said bank account, as he died intestate, which means Yekini had no will before the died.
Informed about the proposal of the Central Bank of Nigeria for money in funds in dormant accounts, Taiwo Yekini, one of the sons of the deceased, felt that it was not a bad idea if their father’s money ends up with the government.
“I don’t mind if the CBN takes over the funds but who knows we may have resolved our problems before then,” he said.
The CBN had released an exposure draft guideline proposing that banks and other financial institutions should transfer funds in accounts that have been dormant for up to 10 years into a trust fund account.
A circular, signed by the Director of the Financial Policy and Regulation Department of the apex bank, Chibuzor Efobi, which accompanied the exposure draft, stated that the proposed guidelines were in response to requests from banks and other stakeholders for the CBN to clarify the procedures for the management of dormant and inactive accounts by banks in the country. The circular, which was dated April 6, 2023, also called for inputs, which should be sent within three weeks.
