UBA Policy Update; Safeguard your Funds.
The United Bank for Africa (UBA) has issued an important policy update to its numerous customers regarding inactivate and dormant accounts
In line with a directive from the Central Bank of Nigeria (CBN),
UBA sent out a message to all its customers on Wednesday, the 20th of November, 2024.
“We are informing customers all over the world that savings accounts that have not been used for a specified period will now be classified as inactive or dormant.”
REASON FOR UBA’S NEW POLICY.
Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has expressed worry about the susceptibility of inactive bank accounts to fraudulent activity.
He said:
“With respect to dormant accounts, what I found personally is that if you leave accounts dormant in banks.
They are sometimes more susceptible to fraudsters copying your identity and trying to gain hold of the system to grab your money.
The policy and the directive aim to ensure that the Central Bank receives all those monies for safekeeping at zero cost to the beneficiaries.
All that will happen is that the Central Bank will manage the money within our possession and when the rightful owner resurfaces.
The money is then returned plus whatever income has accrued.
INACTIVE AND DORMANT ACCOUNTS.
A dormant account is an account that has had no financial activity for a long period of time (usually about a year or two) except for the posting of interest.
The United Bank for African(UBA) released a statement to its customers.
Clearly stating the difference in criteria for rendering an account inactive or dormant.
Accounts that have not had any transactions for six months will be classified as inactive.
The account is only rendered dormant if this inactivity persists for a year.
MONEY IN AN ACCOUNT RENDERED INACTIVE OR DORMANT?
A dormant account with a very small balance may simply evaporate reaching a zero balance due to monthly bank fees that exceed any interest paid.
If all of it doesn’t, the balance is turned over to the state which will return it to the rightful owner upon request.
UBA transfers the money held in dormant accounts to the state’s treasury.
This is only after the accounts have been dormant for a certain period of time
This money will then be returned to the rightful owner upon request.
Accounts that can become dormant include Current and savings accounts, pension fund accounts, and other accounts for financial resources.
The Bank will first attempt to contact the owners of dormant accounts using the most recent mail contact information on file.
The assets in dormant accounts are then transferred to the state’s treasury if the attempt is unsuccessful.
WHAT CUSTOMERS SHOULD DO?
However, the bank reassured its customers that their money will be safe and secure.
And that all it takes to maintain an account is a transaction.
Customers could keep their accounts active by making a transaction.
This should be done the UBA Mobile Banking App, via Internet Banking, Leo, *919#
Or by visiting any UBA branch.
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