Govt has no intentions of taking money off dormant accounts – Mutebile

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Government has no intentions of taking money off dormant accounts.” Mutebile.

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The Bank Of Africa Uganda governor Prof Mutebile has come out to say thats government has no intentions of taking over or even taxing unclaimed balances in dormant bank accounts or mobile money accounts.

In a communication conjured with the Minister of Finance Hon Matia Kasaija , they say that earlier reports that there were plans by government to take depositors’ idle cash on dormant bank accounts under the National Payment System (NPS) Act were just mere hearsays and false.

The Communication comes at a time when the public was traumatized by reports that the government was to take away their savings should an account be idle for over two years.

As a regulator of the banking sector, BoU applies a set of laws to deal with unclaimed balances or dormant accounts for Supervised Financial Institutions (SFIs) and Electronic Money Issuers (EMIs).

According to Section 119 of the Financial Institutions Act (FIA) 2004 and Section 83 of the Microfinance Deposit-taking Institutions (MDI) Act 2003, a dormant account is one that has not had any activity for a period of two years in an SFI. This includes fixed deposit accounts that have not had any activity for two years following the maturity date.

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