The National Commercial Bank has suspended charges applied to dormant local and foreign currency accounts effective immediately.
It says the decision follows a review of the matter of dormant account fees as part of a periodic and annual review of its products and service delivery.
In a statement this morning, NCB’s Senior General Manager, Retail Banking, Audrey Tugwell Henry says dormant charges will be suspended indefinitely.
She says while they’re suspended, the company will review its current processes and determine how to best address the real costs associated with effectively maintaining and monitoring dormant accounts.
Mrs. Tugwell Henry says in the meantime, NCB will seek to identify solutions that meet customers’ need while remaining compliant with all regulatory requirements associated with maintaining the accounts.
A charge of $450 plus GCT was previously applied to both business and personal accounts classified as dormant.
NCB says accounts are classified as dormant if there’s no customer induced activity on the account for a period of 2 years for saving accounts and one year for current accounts.
Under the Banking Services Act, deposit taking institutions are required to report to the Bank of Jamaica deposits treated as unclaimed, due to the absence of a transaction or request for a statement, for 7 years.
Two weeks ago Prime Minister Andrew Holness told Nationwide News that the government would be taking action on the matter of dormant accounts.
The issue of bank charges remains on the national agenda following the opening of the debate on the Banking Services amendment Act.
It seeks to ensure banks offer minimum service standards.