Bank customers can now open accounts without deposits according a directive by the Central Bank of Nigeria, CBN.
The directive was contained in the Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2016/2017 guidelines posted by the CBN on its website.
Before now, commercial banks usually demanded between N1,000 to N5,000 for savings accounts and N10,000 and above for corporate accounts.
CBN said the new policy directive was in line with its commitment to encourage banks to improve their deposit mobilisation efforts while promoting the financial inclusion initiative.
The statement reads in part, “The CBN shall continue to encourage banks to improve their deposit mobilization efforts. In line with the financial inclusion initiative, banks shall be required to allow zero balances for opening new bank accounts so as to make banking services accessible to the unbanked public.
“Accordingly, banks are encouraged to develop new products that would improve access to credit and simplify their account opening processes, without compromising the Know-Your-Customer (KYC) requirements,” the guidelines indicated.
It also said that despite the drive for deposits, banks and other financial institutions should continue to apply the principle of KYC as specified in the CBN the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Regulations in Banks and Other Financial Institutions Regulations (BOFIA) Act, 2013.
“Financial institutions should not conduct any business with persons/entities who fail to properly identify themselves,” it said.
