Banks have commenced actions on the directive issued by the Central Bank of Nigeria (CBN) to place restrictions on accounts that are yet to be linked with customers’ Bank Verification Number (BVN) or National Identity Number (NIN).
Bank customers besiege various banks across the country on Friday after their accounts were put on “Post No Debit or Credit” following the expiration of the March 1 deadline given by the CBN.
‘Post No Debit’ is a restriction imposed by banks on specific accounts, preventing customers from making withdrawals, transfers, or any other transactions from their accounts.
This freezes the funds in the account, rendering it inaccessible for the duration of the restriction.
The Star recalls that the CBN, in a circular on December 1, 2023, directed banks to place restrictions on all Tier 1 bank accounts without BVN.
The circular was addressed to all commercial, merchant, non-interest and payment services banks, other financial institutions, and mobile money operators.
CBN to freeze accounts without BVN, NIN
Tier 1 accounts are those that can be opened with a valid identity or proof of address. The maximum daily transaction limit for a Tier 1 account is N50,000 while the maximum account balance is N300,000.
The apex bank said from March 1, defaulting accounts will not be able to carry out transactions, adding that the move was to promote financial system stability and firm up the Know Your Customer (KYC) procedures in financial institutions.
It also directed banks not to open new accounts without NIN or BVN.
Speaking on the development, a senior manager in one of the banks, who spoke on condition of anonymity because he was not authorised to speak, said the CBN circular on March 1 deadline for BVN/NIN linkage to accounts was clear.
“We will be restricting transactions in accounts without BVN or NIN. It is a regulatory directive that must be complied with or it will attract sanctions. It is all about banking security and the need to ensure enhanced diligence and KYC standards.
“The accounts will be restricted first, and normalised when customers comply,” the official told The Nation.
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