In Fostering Economic Inclusion, the Central Bank of Nigeria Prodded the Deposit Money Banks in a bid to condone Zero Balance for Opening of New Accounts
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- The Central Bank of Nigeria (CBN) has advised the Deposit Money Banks (DMBs) to zero balance for the opening of new accounts, as part of the undertakings to improve tremendous monetary inclusion in Nigeria.
In upswing, the banks are also anticipated to streamline their account opening processes, while embracing to Know-Your-Customer (KYC) regulations in the thrust towards economic inclusion. This divulgence was made in the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for 2020/2021 fiscal year, that was published by the CBN.
While stating that these measures are part of the efforts to encourage banks to intensify deposit mobilization during the 2020/2021 fiscal years, the apex bank also exhorted banks to formulate new products that would furnish considerable admission to credit. A part of the report reads, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilization during the 2020/2021 fiscal years. Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.
“Banks are also encouraged to develop new products that would provide greater access to credit.” In addition, the apex bank states that, the Shared Agency Network Expansion Facility (SANEF), which was inaugurated to strengthen the provision of financial services access points in under-served and unserved locations and drive financial inclusion through agent banking, would proceed with in the 2020/2021 fiscal years.
It asserts that banks, mobile money operators, and super-agents would proceed to generate returns in the prescribed formats and frequency to the CBN.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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