The Central Bank of Nigeria, CBN and the Nigerian Deposit Insurance Corporation,NDIC disagreed on Monday over who should be the custodian of dormant accounts in banks. This occurred during a public hearing organised by the House Committee on Banking and Currency over a bill seeking to address the abuse of dormant accounts by commercial banks in the country.

The House of Representatives sought to amend the Banks and Other Financial Institutions Act 2004 to establish a deposit fund at the Central Bank for standardization and management of dormant accounts in accordance with international best practice for other related matters.

The committee which was chaired by Mr Chukwudi Jones-Onyereri disclosed that billions of naira of depositors funds were held by banks owing to factors which include; incarceration of the account owners, ill-health and death.These funds were subsequently abused by banks who converted them to other uses without the knowledge of account owners or their next of kin.

“We in the House of Representatives have always pride ourselves for dispassionate argument, devoid of party lines, at least as much as humanly possible. It is with this same spirit that I hope stakeholders here present will argue their cause, with none but the Nigerian spirit and interest at the fore,” Jones-Onyereri stated.

The proposed amendment mandates the CBN to assume control of the dormant account within six months after the account holder has been notified without being responsive.

The CBN, represented by a legal department official, Mr Kofo Abdulsalam-Alaga, gave its support to the bill, reiterating that it fell in line with its existing regulations on the handling of such accounts by commercial banks. He also advised that account holders should be informed at inception on the fate of their accounts should they become dormant.

He stated, “We align ourselves with this bill. Banks should start disclosing to customers what will happen to dormant accounts when they are opening such accounts.

“The law should also give the CBN express powers to make regulations for the management of these funds.”

However, the NDIC, represented by the secretary of its board, Mr Belema Taribo, disagreed with the CBN over which organisation should be vested with warehousing the funds. The NDIC reminded everyone present that it was part of its primary duties to insure bank depositors funds and not the CBN.

“These are funds at risk. They are dormant. The money should be warehoused by the NDIC, being that we are the insurer of funds,” Taribo argued.

Mr Taribo further informed the committee that incidences of unclaimed funds or dormant accounts were real, including accounts operated by government agencies and that these must be mopped up for proper management under the new law in view.

Freemoneytinz

The only thing that CBN thinks of is how to Extort money from Nigerian citizens.
Last week,they come up with charges for cash deposits and withdrawals,now they want to 'possess dormant accounts.

Emefiele,Is it your money