CBN Charges Banks To Open Zero Balance Accounts

The Central Bank of Nigeria (CBN) has asked deposit money banks (DMBs) to allow zero balance for the opening of new accounts in order to further promote financial inclusion.

In its Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for 2020/2021 fiscal year, CBN also directed the banks to simplify their account opening processes, while adhering to Know-Your-Customer (KYC) requirements in the push towards financial inclusion.

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 encouraged banks to develop new products that would provide greater access to credit.

The report reads in part, “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.”

Aside, the apex bank said that the Shared Agency Network Expansion Facility (SANEF), which was established to enhance the provision of financial services access points in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.