ECCB Encourages Banks Operating in ECCU to Provide Basic Accounts to Customers Effective 1 December 2024
The Eastern Caribbean Central Bank (ECCB) has encouraged all licensed financial institutions (LFIs) governed under the Banking Act of 2015 to make basic bank accounts available to their customers, effective the first day of December 2024.
This call affirms the ECCB’s commitment to financial inclusion, that is, making financial products and services available and affordable to all individuals and business owners in the Eastern Caribbean Currency Union (ECCU).
In a Circular dated 14 November, issued to Chief Executive Officers of all licensed financial institutions that are supervised and regulated under the Banking Act, 2015, the Governor of the ECCB, Timothy N.J. Antoine said:
“As part of its strategic objective aimed at fostering financial inclusion, the ECCB and the ECCU Bankers Association through a joint Working Group, has developed a comprehensive action plan to facilitate the ease of account opening at all licensed financial institutions. The provisions are codified as proposed amendments to the Banking Act, 2015 and have been submitted to our member countries.”
The LFIs are encouraged to provide basic bank accounts pending the implementation of the proposed amendments to the Banking Act, 2015. The proposed amendments define a basic bank account as a savings account that:
- is free to open;
- does not attract charges for the making of deposits or withdrawals;
- accrues interest;
- is not subject to a minimum balance;
- may be subject to a maximum balance; and
- does not have an associated chequing or overdraft facility.
-more-
Benefits of a Basic Bank Account
A basic bank account for individuals and Micro, Small and Medium Enterprises (MSMEs) will be subject to an aggregate credit limit not exceeding EC$36,000 annually. It will also attract no account opening or maintenance fees. However, automated teller machine (ATM) fees and other charges attached to services will be applicable.
The provision of basic bank accounts will support enhanced financial access and inclusion, as well as convenience, safety and affordability for people in the ECCU, particularly those who are unbanked or underserved by the banking system. Basic account holders will be able to make point of sale, bill payment, ATM and bank-to-bank transfer transactions through access to debit card, online banking, Automated Clearing House and Electronic Funds Transfer services.
The ECCB has also provided guidance on the establishment of a basic bank account product, inclusive of the applicable customer due diligence requirements.
For instance, individuals opening a basic bank account will need to present only one (1) form of valid photo identification of either:
a. National Identification Card; or
b. Driver’s License; or
c. Passport.
The ECCB extends its sincere appreciation to the ECCU Bankers Association, Ease of Account Working Group and LFIs for their valuable contributions throughout this collaborative process and looks forward to their continued cooperation towards our shared objectives of financial inclusion and financial stability.
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Great move
D is so important. NO MINIMUM BALANCE 😒 Afu me money!!!!
Ah Fuh You Money….But ah fuh dem dey bank.
There would Be no bank without CUSTOMERS!!!!!!!
PRAISE THE LORD!! FINALLY!!!
So, why not list the names of all the banks that falls under the auspices of the ECCU, thus giving the prospective customers a choice to select the one that might appeal to their interest.
Finally, hope this will reduced the amount of unbanked people in OECS.
Encouraging doesn’t mean a thing. They should mandate the banks to do this. The banks are killing us in this part of the world. And when you look at their Income statement the most income is derived from Fee Income. Not from loan interest or interest on investments. No no. Those are the fees they are charging the customers for every transaction we made and for them maintaining our account on their books. Even when you have no activity. And interest they hardly give you any. The most you get on a one year CD is 1.5% and with the inflation of 5% you are losing value of money every year. Because the amount you need to buy goods today you would need much more to buy the same good a year from now.
I have not paid any Banking fees in the past 20 years.
@Handit2me – It is basically all of them excluding the Credit unions. I believe they are under FSRC.
ECCB wants everybody’s little pickings on their books. This will eventually make the Central bank governor the unelected president of the ECCU. – “GIVE me control of a nation’s money supply, and I care not who makes its laws.” – Mayer Amschel Rothschild
This is great news, a bit long overdue, nonetheless a very positive move. I would want to consider this as a first step into moving towards a cashless society.
I am also happy that the bulletin also gave guidelines as to the requirements of opening an account. Normally, when you go to different banks, they had their own criteria and it seems some of them want to know what brand of toilet paper you use (lol). On a serious note, requiring job letter, passport and another ID to open an account did not make sense for the current era. As a matter of fact, I should be able to open an account anywhere served by the ECCB without having to travel to the bank.
Maybe we should not be jumping up for joy as yet
Article says the Banks are being “encouraged”.
Let’s save the party for when the ECCB has “Instructed”
.
The ECCB has failed the Eastern Caribbean communities in many different ways.
These suggestions being made should be mandatory.
Domestic banks have to serve three masters. Their shareholders; US regulators and the ECCB.
The local banks hide behind US regulators requirements falsely to make banking prohibitive to people of limited means.
Why should a customer have to pay to use a debit card, when then the idea of an ATM is to reduce cost for the banks.
In many places there is a cost to the customer to do transactions at the bank counter.
This suggesting by ECCB is a very small and weak step that’s long over due.
ECCB is responsible to regulate domestic banks and has done a very poor job doing so.
Like many Caribbean institutions they spend more time, and a considerable amount of their resources promoting and “bigging-up” themselves.
If we should hold a likeability suvey, our banks will fail that test big time. It is sad we we hate the people thay hold our money. And they thing is they don’t seem to care at all. Customer Service is at its worse in this country. They make you feel that they are doing you a favor for holding your money. And they couldn’t care less if you switch to another bank. They are so liquide they are not looking for deposits. And giving loans they make very hard for you. Guess yopu better walk with Jesus to stand garantee for you. And I doubt they would want him either. But I bleieve their time will come when they will be begging people to bring their money into their bank.