BEVERLY HILLS, April 24, (THEWILL) – The Central Bank of Nigeria (CBN) has directed microfinance banks (MFBs), Mortgage Banks and all other Financial Institutions to enrol their customers for the Bank Verification Number (BVN) before August 2017.
This was stated in a circular from the apex bank, signed by the Director, Other Financial Institutions Supervision department, Mrs Tokunbo Martins, to all other financial institutions titled: “Bank Verification Number, BVN, enrolment for customers.”
The circular stated that it has become necessary to extend the BVN enrolment to the customers of other financial institutions, especially those in rural areas, as it will open opportunities for credit to millions of Nigerians without a standard means of identification but declared that customers will not be allowed to make withdrawals from August 1 without BVN.
“The implementation of the BVN initiative, which started with the customers of deposit money banks, DMBs, has been very successful. However, to avoid a broken identification link in the banking system, it has become necessary to extend the BVN enrolment to the customers of other financial institutions especially as some OFIs are located in the rural areas of the country, and have customers that may not have enrolled with the deposit money banks,” the circular read.
“The BVN enrolment will support the achievement of the zero default credit targets set for the Participating Financial Institutions, PFIs, in the Micro Small and Medium Enterprises Development Fund, MSMEDF. It will also open opportunities for credit to millions of Nigerians without a standard means of identification.
“All OFIs are required to enrol their customers on or before July 31, 2017; conspicuously display notices sensitizing customers on BVN in the banking hall; ensure that all new customers have BVN; and forward to the Director, Other Financial Institutions Supervision department schedule of customer accounts with BVN on August 7, 2017.
“Effective August 1, 2017, all customers without BVN linked to their account shall not be allowed to make withdrawals from those accounts.”
Source: The Will