National Commercial Bank (NCB) has announced that effective immediately it will suspend charges applied to dormant accounts.
In a notice to staff, it said the charges have been suspended indefinitely.
NCB added that it will review its current processes and determine how it can best address the costs associated with maintaining and monitoring dormant accounts.
A charge of J$450 plus General Consumption Tax (GCT) was previously applied to business and personal accounts classified as dormant.
Accounts are classified as dormant if there is no customer activity for two 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 seven years.
After a further 8 years, the Act provides for the Minister of Finance to publish information on the unclaimed funds, to begin a procedure under which the amounts are paid over to the Government.
Meanwhile, Fitz Jackson, Member of Parliament for St. Catherine Southern, who has been leading the fight against bank fees, welcomed the move by NCB to suspend charges on dormant accounts, but, he is still not satisfied – stating that if the bank is sincere they will return the funds to the customers.
Last week, he told RJR News that he has taken preparatory steps to start legal proceedings in relation to the matter.