New CBN Directive: Customers Can Now Open Account With Zero Amount

The Central Bank of Nigeria, CBN, Tuesday, ordered all banks in Nigeria to allow new customers to open account with zero amount to attract more people into the banking system.

Usually banks request new customers to open account with a specific amount of money reffered to as minimum account opening balance.

But the CBN in the new monetary, credit foreign trade and exchange policy guidelines released this week said that banks should no longer request for such amount of money.

It said, In line with the financial inclusion initiative, banks shall be required to demand zero balances for opening new bank accounts so as to make banking services accessible to the unbanked public.

"Accordingly, banks are encouraged to develop new products that would improve access to credit. Banks are, therefore, required to simplify their account opening processes, without necessarily compromising the Know Your Customer (KYC) requirements."

The apex bank also disallowed banks from adopting any interest rate calculating method that can result into customers paying higher effective interest rate. It also said there should be no ceiling on balance on savings account for payment of interest rates.