CBN Categorises 10-Year Inactive Accounts as Dormant

CBN Categorises 10-Year Inactive Accounts as Dormant
The Central Bank of Nigeria has clarified that only accounts inactive for more than 10 years will be considered dormant and used for investment purposes. 

The apex bank said a dedicated office would be established to manage these dormant accounts and unclaimed balances. 

This information was contained in the document titled 'FAQs – Guidelines on Dormant Account and Unclaimed Balances – July 25, 2024' posted on the bank's website. 

The guidelines aim to operationalise Section 72 of the Banks and Other Financial Institutions Act, 2020 and standardise the management of dormant accounts and unclaimed balances.

The CBN also revealed its plan to potentially invest funds from dormant accounts and unclaimed balances in Nigerian Treasury Bills and other government securities.

It promised that the funds would be managed in trust, with the principal and any accrued interest refunded to beneficiaries within 10 working days of a reclaim request. 

Dormant accounts are defined as those inactive for over 10 years, including various types of account balances specified in the CBN's Guidelines.

Furthermore, financial institutions are mandated to notify customers immediately and every quarter when their accounts become inactive or dormant.