In a circular dated December 1st, 2023, the apex bank instructed banks to impose restrictions on all Tier 1 bank accounts lacking BVN. Tier 1 accounts are those that can be opened with valid identity or address proof.
While some banks set February 29, 2024, as the deadline, others did not specify any deadline.
The National Identification Number (NIN) comprises 11 randomly assigned non-intelligible numbers obtained after enrollment into the National Identity Database (NIDB). BVN is a biometric technology utilizing unique identifiers to enhance authentication in real-time security processes.
To link BVN or NIN to a bank account, customers can utilize the following methods:
1. SMS: Send BVN/NIN, account number, and BVN/NIN number to the designated number/code provided by the bank or service provider.
2. Internet Banking: Log in to the bank’s internet banking platform, choose the BVN/NIN option, initiate a new request, enter BVN/NIN, select the bank of issuance, answer security questions, and follow instructions.
3. Email Request: Send an email request to the account officer.
4. Visit Bank Branch: Visit the nearest bank branch.
Background:
The CBN’s circular dated December 1st, 2023, mandated banks to impose restrictions on Tier 1 bank accounts lacking BVN. Tier 1 accounts are those openable with valid identity or address proof. These accounts have a maximum daily transaction limit of N50,000 and a maximum balance of N300,000.
The circular, titled ‘TIER-1 WALLETS AND ACCOUNTS: MANDATORY USE OF BANK VERIFICATION NUMBER (BVN) OR NATIONAL IDENTIFICATION NUMBER (NIN),’ aimed to strengthen Know Your Customer (KYC) procedures in financial institutions under the CBN’s purview.
Key points from the circular include:
– Mandatory BVN and/or NIN for all Tier-1 bank accounts and wallets for individuals.
– Continued requirement for BVN and NIN for Tiers 2 & 3 accounts and wallets for individual accounts.
– The process for account opening to commence by electronically retrieving BVN or NIN information from the NIBSS’ BVN or NIMC’s NIN databases, with validated BVN customers to be profiled in the NIBSS’ ICAD within 24 hours of account opening.
Source: vanguard