How to reactivate dormant bank accounts in Nigeria
The growing number of dormant bank accounts in Nigerian banks is getting so alarming that their reactivation is becoming of essence and the Central Bank of Nigeria (CBN) is as well expressing great concern to this trend.
In this guide, we shall take an optical journey in the apex bank governing stands and dictates to commercial banks as it concerns dormant bank account in Nigeria.
The central bank of Nigeria in its capacity has given the following guideline on dormant bank accounts and expects compliance from the banks to meet with the best international practices across the globe.
In its circular, the absence of clear guidelines for the management of dormant accounts in Nigeria resulted in different treatments of dormant account balances by deposit taking financial institutions, thus raising concerns among bank account holders, regulators and other stakeholders.
Representations received by the CBN from stakeholders on the subject highlighted the need for the bank to develop a regulatory framework on the management of dormant and inactive accounts as well as other unclaimed funds in Nigeria for the benefit of the banking system.
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The objectives among others are:
- To standardize the management of dormant account in Nigeria.
- Conform to international best practice.
- Eliminate the possibility of banks converting dormant accounts balances to income and
- Strengthen risk management and internal control processes.
You will get to understand the following dynamics:
How to reactivate dormant bank accounts online
Dormant account period
Dormant account reactivation letter to bank format
Gtbank dormant account reactivation
Dormant account in Nigeria
Access bank dormant account
First bank of Nigeria dormant bank accounts reactivation form.
DORMANT BANK ACCOUNT: INACTIVE ACCOUNT
A bank accounts is said to be inactive if there has been no activities on the account for the period of six months. These activities are cash deposits, withdrawals, ATM transactions, cheque issuance and all what have you.
DORMANT BANK ACCOUNT: DORMAN ACCOUNT
A bank account shall be classified as dormant bank account if there has been no transactions or activities initiated in the same account for a period of one year.
TREATMENT OF DORMANT BANK ACCOUNT BALANCES
In the light of the above, the following standard guidelines shall stand for the operation of dormant bank accounts in Nigeria.
- Interest bearing account shall retain their interest earning status during the period of dormancy.
- Deposit taking financial institutions shall continue to monitor accounts that show tendencies of inactivity and initiate actions for their reactivation or protection from wrong usage, such actions shall include though not limited to any of the following: SMS. Email, visitation and or phone calls. In all cases, the cost of monitoring the account and contacting the customer shall be borne by the bank.
- Once dormant bank accounts are observed, they shall be reported quarterly to banking supervision or other financial institution supervision department of CBN.
- In line with the uniform account operating policy, every customer shall provide a next of kin when opening an account.
- Three months to dormancy, the bank shall notify the account holder of the status of the account. For individual account holders the bank cannot reach, they should contact their next of kin.
- Reactivation of inactive/dormant accounts shall not attract any fee from the account holder.
- Dormant account balances shall be covered by Deposit insurance Scheme.
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DORMANT BANK ACCOUNT: CAN DORMANT ACCOUNT BE REACTIVATED?
Reactivation of dormant bank account is the act or practice of bringing back to life or existence an account that has already gone dormant being out of activities, ready for business transactions again.
In the light of the above, yes, you can reactivate a dormant account and start using it again for your business activities as you so wished.
DORMANT BANK ACCOUNT PERIOD
From the circular above, when an account goes full one year (1yr) without any business activity or transaction which could involve cash deposit, withdrawal, fund transfer, ATM activities etc, it goes dormant after a short notice as now directed by Central Bank of Nigeria.
CAUSES OF DORMANT BANK ACCOUNT
A lot of factors could be responsible for dormant bank accounts, judging from past experience, death of the account holder, owning multiple bank accounts with different banks, poor services both on the side of the bank management and its employee had contributed a lot to customers abandoning their accounts with such banks
HOW TO REACTIVATE YOUR DORMANT BANK ACCOUNT
So you are ready to reactivate your dormant bank account finally, the process is really easy and seamless. Take the following steps:
- Pick your valid ID card which could be any of the following, national ID card, permanent voters card, international passport or BVN. Also remember to take along your recent utility bill or NEPA bill generally called.
- Head to any of your bank branch.
- Walk straight to the customer service point, tell them you want to reactivate your dormant account.
- You will be issued a Dormant bank account Reactivation form, fill the form correctly and appropriately. They could even fill a premise visitation report for you to probably update your current place of residence though your utility bill can cover that. Once you are done, hand it over to them.
- Your account will be active within 24 hours. And you can commence your business transactions with your account. The service is free of charge. You can as well visit https://www.cbn.gov.ng for guidelines.
HOW TO REACTIVATE DORMANT BANK ACCOUNTS ONLINE
Dormant bank bank accounts can only be reactivated at the bank branch.
There hasn’t been online facility modified for such purpose at the moment.
This service is restricted to physical presence to counter fraudulent activities that could arise as a result of third party having access to customer’s account to effect reactivation then move funds in such account using any e-channel platform.
CAN MONEY BE PAID INTO DORMANT BANK ACCOUNT?
The simple answer is yes, you are allowed to make payments into dormant account, but you cannot withdraw such funds except you reactivate the account.
NB: Once a bank account goes dormant, it automatically goes to PND status, which means “place no debit”.
DORMANT ACCOUNT ACTIVATION LETTER TO THE BANK FORMAT
This is one question my readers have continued to ask, and I think I should do justice to it at this point.
There’s specifically no definite format for writing a letter to the bank, requesting reactivation of a dormant account.
However, kindly use the below as a guideline
Write your address at the top right corner of the paper, date inclusive.
Then address your letter to the bank manager at the left end just below your own address, but at the left.
The Bank manager Access Bank PLC,
Asaba branch… As the case may be.
Then comes the body of the letter, which starts with introduction like Sir/Madam
Then the heading of your letter which should look like something like this
“LETTER OF ACCOUNT REACTIVATION”
Kindly use this as an instruction to reactivate my savings/current account with your bank.
Account name: Ike Ahmadu Kola
Account number: 0065****78
Yours in business
Sign your signature here
Write your name here
That’s all as simple as that.
GTBANK/ACCESS/FIRST BANK DORMANT ACCOUNTS REACTIVATION
Reactivation of dormant bank accounts in any of these banks is not a rocket science.
It’s just as obtainable in other banks.
All you have to do is walk into your bank with valid ID card and probably utility bill as the case may be.
You could be required to fill a customer information update form. PVR could follow I.e Premises Verification Report, to be done by your account officer or any officer in charge or available at the moment.
First bank dormant account reactivation form is the same as you will obtain in other banks for dormant accounts reactivation.
Bank dormant account reactivation period is normally less than 24 hours, you are not expected to pay a fee for reactivation and you can start using your account instantly upon reactivation notice, that’s all you need to know on reactivation of dormant bank accounts.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.