Bank customers who have done the
mandatory biometric registration at any bank branch will start
collecting their Bank Verification Number cards, the Managing Director,
Nigeria Interbank Settlement System Plc, Mr. Ade Shonubi, has said.
Shonubi stated that bank customers would
not be charged for the cards and that lenders would soon begin the
distribution of the BVN cards.
He said the cards were already with the banks awaiting collection by customers.
The NIBSS boss said, “We are giving the
BVN cards out for free. The cost is borne by the Bankers’ Committee,
which considers the whole biometric project very important. They have
been bearing the cost; the cost of the cards, cost of almost everything
else that has to do with the BVN.
“I have got my BVN card. I would
encourage bank customers to talk to their banks as well. They have been
printing them and sending them to the banks to distribute to the
branches where you have enrolled, you would be sent an SMS. For those
that have given email address, it would be sent their emails.”
The BVN, which is aimed at protecting
bank customers from fraudsters and further strengthening of the banking
system, is an initiative of the Central Bank of Nigeria in conjunction
with the Bankers’ Committee.
It is designed to address the safety of
customers’ funds, avoid losses through compromise of personal
identification numbers and other criminal activities in the industry.
The NIBSS boss, who is responsible for
the implementation of the BVN, explained that the BVN cards would be
issued to customers after they had completed the ongoing BVN
registration.
Shonubi said a significant number of bank
customers had so far obtained their BVN and expressed optimism that
banks would achieve their targets on customer registration given the
current level of compliance by customers.
In a statement from the Bankers’
Committee, he said as part of efforts to encourage enrolment for the
BVN, the CBN had directed banks to only honour transactions over N100m
from customers with BVN from March 2015.
Such transactions, according to the
central bank, include but not limited to, money transfers, loans, and
contingencies, among others.
The CBN also urged all bank customers to
register for their BVN by June 2015, warning that any bank customer
without a BVN would be deemed to have inadequate Know-Your-Customers by
that date.
The BVN is a unique identifier for each
bank customer across the financial industry, making it possible to build
and track customer financial history and activity. This will allow
banks access to more reliable information that could inform decisions on
customer loan and credit applications and other complex transactions.
The initiative, which was launched on
February 14, 2014, is expected to boost financial inclusion as those who
have typically stayed away from mainstream banking due to low literacy
levels will be able to open and access their bank accounts using their
biometric information rather than traditional identification methods.
Credit: Punch
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