CBE Directs Banks to Reconsider Reducing Fees on Dormant Accounts

The Central Bank of Egypt (CBE) directed on Wednesday banks to reconsider reducing fees on dormant accounts.

CBE decided to issue a unified definition of active and dormant accounts at the banking sector level, stressing that the number of active accounts is one of the most important indicators of measuring financial inclusion that reflects the actual use of bank accounts.

The central bank also directed banks to reconsider reducing fees and expenses on dormant accounts to the lowest possible level, especially accounts with low balances, stressing the need to simplify accounts opening using customer identification rules, in addition to purifying stagnant accounts with the bank.

The Central Bank clarified that a dormant account is the one that did not perform any of the transactions, whether withdrawal, deposit, transfer, electronic inquiry or documented balance for one year for current and mobile accounts, and two years for savings accounts.

It pointed out that the transactions carried out by the bank on customer accounts, such as deducting fees or adding returns, are not considered transactions under which the account is activated.

It added that the active account is the one on which one transaction (withdrawal, deposit, transfer, electronic or documented balance inquiry) has been made at least within a year for current and mobile accounts, and two years for savings accounts.

Activate dormant accounts

The Central circular included that in the event that there are other active accounts for the client in the same bank, he is allowed to activate his dormant accounts using any of the means of contacting the bank.

For mobile accounts, the customer is allowed to activate his account through bank branches, payment service providers, internet banking or electronic channels.