Accounts without CBN, BVN, NIN to be frozen

The Central Bank of Nigeria has warned checking account holders that accounts without Bank Verification Number (BVN) and National Identification Number (NIN) will be frozen.

The apex financial institution, in a round issued on Friday, mentioned it has directed ‘Post no Debit’ restriction for all financial institution accounts without BVN and NIN from April 2024.

“As part of our efforts to promote stability in the financial system, there is a need to strengthen Know Your Customer (KYC) procedures at financial institutions under the jurisdiction of the Central Bank of Nigeria (CBN),” the assertion mentioned.

“Accordingly, the CBN hereby points amendments to Section 1.5.3 of the Regulatory Framework (Guidelines) on the Operation and Watch List of Bank Verification Numbers (BVNs) for the Nigerian Banking Industry.

“In this regard, all Tier-1 financial institution accounts and wallets of people are required to have a BVN and/or NIN.

“Personal Tier 2 and Tier 3 accounts and wallets are still required to have a BVN and NIN.”

CBN says that for all current Tier-1 accounts or wallets for which a BVN or NIN doesn’t take impact instantly, accounts or wallets with inadequate funds will be positioned on “no debit or credit posting” till the brand new course of is met. I added that.

It mentioned that from March 1, 2024, all funded accounts or wallets will be positioned on “no debit or credit” standing and no additional transactions will be allowed.

Apex Bank additional mentioned that the BVN or NIN connected and/or related to each account/pockets should be electronically verified by January 31, 2024.

Post-No-Debit alerts, however, are directives that prohibit financial institution clients from withdrawing, transferring funds, and even making transactions of their financial institution accounts.

Source: guardian.ng