NDIC And CBN Bicker Over Responsibility Of Dormant Accounts Funds

At a public hearing by the House of Representatives on amendment of the Banks and Other Financial Institutions Act (BOFIA), the Central Bank Of Nigeria (CBN) and the National Deposit Insurance Corporation (NDIC) gave dissenting views as to who should be custodian of funds in dormant accounts in the country.

While the proposed amendment suggests the apex bank should be in charge of the funds, the NDIC was of the opinion that since the funds were at risk, it should be in charge.

Rather than create a source for another intervention fund for the CBN, enlightenment efforts should be stepped up to reduce the spate of customers leaving accounts dormant. The CBN can also issue guidelines to commercial banks on how to manage these funds while holding them, such as paying interest on the funds or investing them in debt securities.

The banks should also be made to declare how much they each hold in dormant accounts in their annual financial statements, as is the case with unclaimed dividends.