CBN Introduces New Policy to Stop Converting Dormant Accounts Into Banks’ Income

The Central Bank of Nigeria (CBN) has introduced new guidelines for the treatment and management of dormant account balances by deposit-taking financial institutions.
Part of the objectives of the policy, according to the CBN, is to ensure that dormant account funds are identified and channeled through appropriate institutions to make them more productive to the economy and eliminate the possibility of banks converting dormant account balances to income. The bank, in a circular released and signed by its Director, Financial Policy and Regulation Department, Mr. Kevin Amugo, on Tuesday, stated that the absence of clear guidelines for the management of dormant accounts had resulted in the disproportionate treatment of such account balances by deposit-taking financial institutions. 

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