In a recent circular released on Friday, the central bank has mandated financial institutions to impose a “Post no Debit” restriction on existing Tier-1 accounts/wallets lacking a BVN or NIN. This restriction prevents customers from making withdrawals, transfers, or any other debits until compliance with the new process.
With immediate effect, unfunded accounts/wallets are subject to the “Post No Debit or Credit” restriction until the requirements are met. Starting March 1, 2024, funded accounts or wallets will also face the same restriction, prohibiting any further transactions. This directive was outlined in a circular by Chibuzo Efobi, the CBN Director of Payments System Management Department, and Haruna Mustapha, the Director of Financial Policy and Regulation Department.
CBN Without BVN: Electronic Revalidation
The circular emphasized the electronic revalidation of all BVN or NIN linked to accounts/wallets by January 31, 2024. The bank plans to conduct a BVN and NIN verification shortly, aiming to enhance financial system stability and reinforce Know Your Customer (KYC) procedures.
Furthermore, the central bank will conduct a comprehensive BVN and NIN audit, applying appropriate sanctions for identified breaches. The account opening process will involve electronically retrieving BVN or NIN-related information from the NIBSS’ BVN or NIMC’s NIN databases. This information will become the primary data for onboarding new customers, while existing accounts/wallets with validated BVN will be promptly profiled in the NIBSS’ ICAD within 24 hours of opening.
For individuals without a BVN or NIN, the CBN advises regulated financial institutions to initiate the enrollment process onto the BVN database, following protocols issued by NIBSS.
Read also: Investors Alert: CBN to Clear FX Backlog in 1-2 Weeks
About CBN
The Central Bank of Nigeria seeks to proactively establish a stable framework for Nigeria’s economic development. This involves the efficient and transparent implementation of monetary and exchange rate policies, as well as the effective management of the financial sector.
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