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, the ECCB says, affirms its 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:
a. is free to open;
b. does not attract charges for the making of deposits or withdrawals;
c. accrues interest;
d. is not subject to a minimum balance;
e. may be subject to a maximum balance; and
f. does not have an associated chequing or overdraft facility.
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 form of valid photo identification of either:
a. National Identification Card; or
b. Driver’s License; or
c. Passport.