The Central Bank of Nigeria (CBN) has recently removed the Post No Debit (PND) restrictions imposed on 440 individual and corporate account holders across various banks in the country.....KINDLY READ THE FULL STORY HERE▶
A letter issued on July 25, 2023, signed by A.M. Barau on behalf of the CBN’s director of banking supervision, was directed to all banks, instructing them to lift the PND status on these accounts.
Post No Debit is a term that signifies a measure adopted by banks to prohibit specific account holders from performing activities such as withdrawals, transfers, or debits from their accounts. This action effectively immobilizes the funds in the account for the duration of the restriction….CONTINUE READING
Customers whose accounts are subjected to PND can still log into their accounts online and check their balance; however, they are unable to make transactions, leading to a temporary freeze on the account’s funds.
Moreover, if a customer possesses multiple accounts in different banks, and one of those accounts is under PND, the restriction applies to all the linked accounts, causing any outgoing transactions to be declined.
The decision to impose a Post No Debit restriction can vary and is often executed by banks as a precautionary measure in response to potential risks related to either the account or the account holder.
Common reasons include suspected fraudulent activities, transaction irregularities, disputes, court orders, or concerns about the account’s financial stability.
The initiation of a PND on an account may or may not require a court order. In cases where an account holder suspects unauthorized access to their account, they can request the bank to place the account under PND temporarily to prevent unauthorized debits. This does not necessitate a court order and can be rectified by contacting the bank to lift the restriction.
Similarly, banks can impose a PND on an account if they detect unusual or significant activity, such as receiving funds exceeding the specified Know Your Customer (KYC) limit. For instance, if an account with the lowest KYC level suddenly receives a substantial amount like N10 million, it may trigger a PND status.
Furthermore, if an account that typically maintains a balance of N5,000 unexpectedly receives N2 million or displays other suspicious activity, it can prompt the bank to apply a PND. These scenarios can be resolved by the account holder providing the necessary documentation to the bank.
However, if there are suspicions that an account is linked to terrorism financing or fraudulent activities, government or law enforcement agencies possess the authority to impose a PND on the account.
