BVN: Confusion As Banks Place Restriction On Customers’ Accounts

There was pandemonium in most banking halls in Lagos State monday as a lot of customers that either failed to register or link their accounts to their bank verification number (BVN) were unable to transact business.

Customers-queue-outside-a-GTBank-branch-for-BVN-registration

This is just as the Central Bank of Nigeria (CBN) announced the extension of the deadline for Nigerian bank customers in the Diaspora to enrol for their BVN to January 31, 2016.

A statement by CBN Director, Corporate Communications, Alhaji Ibrahim Mu’azu, explained that the extension was to enable the customers in the Diaspora complete the enrolment exercise as well as link the BVN with their respective accounts.

THISDAY learnt that those affected were also not able to make withdrawals through ATMs. As a result of this, a lot of banking halls in Lagos were crowded monday.

The customers affected mostly were also those with more than one bank account as the bankers said some of them failed to link their BVNs with their accounts.

However, some angry bank customers that spoke to THISDAY, put the blame on the banks as they claimed that they had concluded the linkage process.

At First City Monument Bank Limited (FCMB), Yaba, Lagos, a bank customer who told THISDAY that though he had registered for his BVN at the United Bank of Africa Plc and linked the number to his FCMB account, he could not withdraw cash through the ATM.

Also, a customer of Guaranty Trust Bank Plc (GTBank), Mr. Raheem Akingbolu’s account was barred over the BVN issue.

“I registered for my BVN in Ado-Ekiti and when I got to Lagos, I was told that the enrolment I did in Ekiti was not successful and I was asked to register again. But to my surprise, my account was blocked this morning and I couldn’t make any withdrawal,” he said.

Speaking to THISDAY, another GTBank customer, Cynthia Obioma, said: “I have been to three different branches today to rectify this BVN complaint and the queues were overwhelming.”

Findings showed that the situation was the same at other bank branches visited at Okota and Apapa areas of Lagos as banks had a lot of customers’ complaints over BVN to address.

But GTBank in a notice to its customers titled: “Temporary Restriction of Your Account,” said it took the action in line with the CBN’s directive that all accounts without BVN belonging to customers resident in Nigeria, should be restricted from debit transactions.

“Please note that this category of GTBank accounts without BVNs have been restricted from debit transactions effective Sunday, November 1, 2015.  As a result of this, your account with us has been classified as having inadequate Know-Your-Customer (KYC) and can only receive transfers and deposits. Payments or cash withdrawals from such accounts have been restricted.

“Please note that your account with us is still valid as the restriction placed on your account is temporary, and will be automatically removed once you enroll for your BVN at any of our branches nationwide or link a BVN to your account. BVN enrolment will continue in all our branches nationwide after the 31st of October 2015 deadline,” the bank added.

However, the Director, Banking and Payment System Department, CBN, Mr. Dipo Fatokun, appealed to bank customers to be patient.

“The challenge we are having is not something to worry about. Even if your account has been restricted probably because you have not linked it, all you need do is go to an ATM or do it through internet banking. Some banks even have phone number(s) for BVN linkage. So, this is not something to worry about,” Fatokun said.

Muazu however expressed satisfaction with the progress made in the implementation of the BVN project, especially for accounts operated by residents of Nigeria.

“However, with the expiration of the October 31 enrolment deadline, the CBN has directed that bank accounts of Nigerian residents without the BVN would henceforth be operated as ‘No Customer Initiated Debit’ account, until the account holders obtain and attach BVNs to the accounts. This means that a customer may not be allowed to withdraw money from his or her account until the BVN has been acquired and linked to the account,” he said.

The CBN statement clarified that accounts of Nigeria residents without BVN would continue to receive cash and electronic credit inflows and would neither be deactivated nor confiscated.

It therefore advised the deposit money banks to educate their customers accordingly. It also advised the banks to remind their customers of the need to link their BVN with their accounts if they had done the enrolment at another bank.

On his part, the Chief Executive Officer, Nigerian Interbank Settlement System, Ade Shonubi, told THISDAY that his organisation had provided “all the banks with tools that allow them to link accounts across banks. Customers can go to any of their banks and link as many accounts as they have”.

Source: Thisday