BUSINESS
BVN: CBN extends enrolment deadline for MfB customers
Customers of Microfinance Banks (MfBs) and Other Financial Institutions (OFIs) without the Bank Verification Number (BVN) will be unable to make withdrawals from their accounts from January 1, 2018, the Central Bank of Nigeria (CBN) has disclosed.
The BVN enrolment is a brainchild of the apex bank and the Bankers’ Committee, a body of banks’ managing directors and CBN. This is coming as the initially deadline was set for July 31, but in a circular on Friday, which was obtained from the apex bank website over the weekend announced an extension in the deadline for the verification.
The new directive indicated that by December 31, 3017, all customers of financial institutions operating in the country are expected to have had their BVN. The central bank has again assured Nigerians that the BVN is geared towards financial system stability, while ensuring Deposit Money Banks (DMBs) customers are identified and known, so as to prevent those that will use the banking system as a platform to carryout illegal activities.
“As you are aware, the deadline expired on July 31, 2017, and consequently several OFIs are in breach of this regulatory directive,” the statement read.
According to the statement signed by Tokunbo Martins, director, Other Financial Institutions Supervision Department, the apex bank extended the deadline after appeals from various bodies.
In March, Kemi Adeosun, minister of finance had written to Godwin Emefiele, CBN governor, requesting that the BVN registration exercise be extended to microfinance banks.
“We have already commenced a review of such cases to identify and investigate cases of fraud,” she had said.
“We know that extending the requirement for BVN to microfinance banks may put a huge financial strain on the smaller microfinance banks; but some such as National Police Force microfinance (NPF), have over 27,000 salary accounts.
“Our inability to perform checks on such a large number of salary earners is a key risk.
“This will support the federal government’s efforts at reducing leakages to create headroom for the capital projects that will support the growth of the economy.”
It would be recalled that at the end of 333rd Bankers Committee meeting, held in Lagos, Managing Director/CEO, Fidelity Bank Plc, Nnamdi Okonkwo, pointed out that the bankers committee, has agreed to tackle financial inclusion bottlenecks, such has customers of Microfinance Banks (MFBs) registering for their BVN registration exercise at any of the commercial bank free of charge.
He stressed that henceforth, registration of BVN is now opened for MFBs customers in any of the bank of their choice, so as to promote financial inclusion. Meanwhile, the Managing Director, Nigeria Interbank Settlement System (NIBSS), Mr. Ade Shonubi, had stated that bank customers who have done the mandatory biometric registration at any bank branch will start collecting their BVN cards very soon.
Despite this statement made in Lagos by the NIBSS boss, investigations by Daily Times have showed that depositors have not been given BVN cards, even as he noted that bank customers would be charged for the cards and that lenders would soon begin the distribution of the cards.
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