In recent times, once you enter any banking halls, you will be accosted by one of the staff who will say to you, “Please sir or madam, have you been registered for the Bank Verification Number (BVN)? It is a directive from the Central Bank of Nigeria (CBN). If you have not, while you are waiting for your turn, you can use the opportunity to register. It will not take more than 10 minutes.”
Also, some text messages and e-mail notifications from banks are flying around, calling on customers to come to any of their branches and enrol for the BVN.
Banks are doing this in order to meet with the deadline given to them by the CBN to enrol 40 percent of their customers on or before the end of December 31, 2014.
BVN enrolment is the process of capturing a customer’s details which includes fingerprint and facial image after which a BVN number is generated. The goal of BVN is to uniquely verify the identity of each bank’s customer for Know Your Customer (KYC) purposes.
Uju Ogubunka, president, Bank Customers’ Association of Nigeria (BCAN), who had already enrolled said if the banks are serious, they can meet the deadline. He told BusinessDay on phone that it is not just by sending text messages and e-mails but more customer engagement and public awareness are crucial to achieving this.
“You can receive text message and think that it is not urgent. One-on-one discussion can help. The banks need to get the people together and enlighten them about BVN,” he said.
READ ALSO: Nigeria gets closer to cheaper fuel, as 5,000bpd modular refinery takes off
The Apex Bank had in October 21, 2014 released a circular to all banks on clarification on BVN enrolment. In other to fast-track the enrolment process, the CBN ordered banks to give more attention to the enrolment of their customers.
Consequently, all deposit money banks are required to enrol 40 percent of their customers on or before December 31, 2014 and 70 percent on or before March 30, 2014.
Also, the CBN gave banks latest by October 31, 2014 to fully integrate their core banking system to ease the enrolment process.
According to the CBN, all new loans must have the BVN as a condition precedent to drawdown, with effect from November 3, 2014, and all credit customers must have BVN by December 31, 2014.
In a circular signed by Dipo Fatokun, all banks are expected to give more attention to the enrolment of their customers as CBN monitors compliance.
The CBN in collaboration with Bankers Committee launched the BVN project in February 2014 as part of overall strategy of ensuring effectiveness of Know Your Customer (KYC) principles.
Also, the CBN limits high transaction volume to BVN customers only. Consequently, by March 2015, transactions valued at N100 million and above would only be allowed for customers with Bank Verification Number (BVN), and by June 2015, all banks’ customers are expected to comply according to the CBN. These include, but not are limited to, money transfers, loans, contingencies among others.
This is in order to increase the tempo in the enrolment by the deposit money banks (DMBS) customers on the BVN and to start coupling the enormous benefits of the project.
The CBN said that by June 2015, all banks’ customers should have the BVN and any bank customer without it would be deemed to have inadequate KYC. The CBN said banks should intensify efforts to sensitise their customers on the aforementioned development and enrol them for the BVN accordingly.
HOPE MOSES-ASHIKE
