CBN Introduces New Deposit Limits For Account Holders

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The apex regulatory body for financial institutions has released a new set of guidelines for the opening of accounts in Nigeria.

According to the new rules, there are now three tiers of account holders namely,

  1. High Value Account
  2. Medium Value Account
  3. Low Value Account

the high value account holder has no limit as far as transactions, however the medium value account has a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000. The Low Value account has a maximum single deposit of N20,000 and a maximum cumulative balance of N20,000.

Low Value Accounts are subject to close monitoring by the financial institutions and less scrutiny by bank examiners. They may be opened at branches of banks by a prospective customer or through banking agents and no amount is required for its opening. However, such accounts prohibit international funds transfer.

Medium Value Accounts can be opened face to face at any branch of a bank by agents for enterprises or by the account holder but, the accounts are strictly savings with no amount required for its opening. Also, where cross-checking of client’s identity cards information is not completed at the point of account opening, withdrawal would be denied.

For High-Value Accounts, banks are required to obtain, verify and maintain copies of all the required documents for accounts opening. Account is to be opened at the bank branches by physical presence of the prospective customer and the accounts could be both savings and current.

The CBN through a circular signed by Director, Financial Policy and Regulation, Chris Chukwu, explained that the new rules were made necessary to checkmate money laundering as well as to achieve the FG’s policy on financial inclusion.

 

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