DORMANT ACCOUNT AND ITS IMPLICATIONS IN NIGERIA

The emergence of internet banking and phone transfer have made things easy for customers. This may be a little deposit or a withdrawal.

CHAMAN LAW FIRM

5/17/2022 2 min read

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DORMANT ACCOUNT AND ITS IMPLICATIONS IN NIGERIA

It is not an uncommon occurrence for bank account to become dormant. How does this happen? It might be as a result of not using such account regularly, some families opened the account without their heirs knowing about them or such account was forgotten. A bank account with no activity for a long period of time will go dormant.

WHAT IS A DORMANT ACCOUNT?

A dormant account is a bank account that has no activity on it for a period of 12 months. Ordinarily, banks convert accounts with no activity for a long period into inoperative or dormant accounts to curtail the risk of fraud.

IMPLICATIONS OF DORMANT ACCOUNT

When an account is deemed as “Dormant”, all customers’ debit and credit transactions will be blocked including restrictions on ATM, internet-banking and phone-banking transactions (USSD). Some banks extend these restrictions to cheque transactions as well. In short, it renders the account useless!

HOW TO PREVENT YOUR ACCOUNT FROM GOING DORMANT

MAKE TRANSACTION REGULARLY: The emergence of internet banking and phone transfer have made things easy for customers. This may be a little deposit or a withdrawal.

ENSURE YOU GET REGULAR NOTIFICATION: When you are opening a new account, there is always an option for the form of notification that you might want to opt for. The reason behind this is to send you regular information concerning your account.

TAKE ADVANTAGE OF BANK PRODUCTS AND SERVICE: You don’t have to visit the banking hall, bank products and services like Mobile App, Internet Banking and Deposit Automated Teller Machines, are there to make life comfortable for customers and available 24/7.

CONSTANT SUPPLY OF UPDATED ADDRESS AND CONTACTS: Updated contacts and address helps the banks to access you and keep you notified in case of any vital information.

ENSURE YOU GET YOUR BANK VERIFICATION NUMBER TO CONNECT YOUR ACCOUNTS: This applies to people with one or more account numbers.

CLOSE LES ACTIVE ACCOUNT: In case you have more than one account, it is advisable that you close down the one you know you won’t use for an extended period of time.

In conclusion, banks users are to ensure that their accounts are active and also ensure that they get necessary notification related to the account.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080