Pnd in banking (Meaning, types, causes and solutions)
Let’s give you wings over pnd meaning in banking.
What is pnd in banking entails and the general scope and meaning of pnd in banking.
Introduction | Post no debit (PND)
One of the ugly things alot of people normally face especially in the Western part of this universe is pnd issues.
Have you been told that you ATM card is not smart or card dishonoured and it’s like?
In most most cases cases the financial institution will proceed to send you an SMS on address verification (AVR) challenges.
Telling you that “Esteemed customers we’re unable to verify your address please call or visit any close branch”, main! It’s not funny at all.
And when you put your self together and proceed to the bank you will be presented with pnd due to avr.
As little as it is, if God didn’t help you to see who will assist you to lift that pnd on your account, you’ll end up perplexed.
So what is this pnd on account all about, why it and it’s benefits in the financial community…?
Is it only one bank that have this pnd issues as a tradition or is it a general phenomenal.?
Be it as it may let’s find out this excruciating pain in the heart of customer when it comes to withdraw from account.
Overview of POS no debit (PND)
Pnd on bank account (Complete definition)
The term pnd on account simply means “post no debit”.
Then, a large man will ask what’s post no debit on the hand…?
Post no debit is usually refers to the situation where by anything cash and card withdrawal, buying of data, airtime purchase, fund transfer, subscription and all sorts of bill payments are disabled from a particular bank account for a peculiar reason from a financial institution such as first bank, UBA, GTB bank and others.
In other words pnd on bank account is an official restriction from bank to her customer or staff bank account (freezing that account for a period of time).
Thereby, stopping them from from carrying out any form of withdrawal from any form of channels.
Such as inability to withdraw from POS, USSD codes, mobile app, as well as from ATM and other withdrawal windows.
However, during this withdrawal restrictions credit or fund deposit is allowed.
Which simply means that money can enter that same account that’s on pnd but can not leave.
Types of pnd on bank account:
There are lots of pnd on account but we will look at the major types which are as follows.
- Customers induced pnd.
- Bank induced pnd.
- CBN or Third party induced pnd (can be from legal firms like Court or EFCC).
Now let’s look at each one briefly.
– Customers induced pnd in banking
This is a type of bank pnd where by the customer willingly instruct his or her bank to stop every form of withdrawal on their account.
Most cases it may be due to missing ATM or their mobile phone.
However, what matters here is that the customer and the bank agree not to allow any form of withdrawal pending when they are ready to lift it.
This can be don by the customer by dailing the banks ussd codes for that or by visiting the branch in person.
The will give the customer forms to fill or ask to write a letter for proper documentation before placing the pnd on the account.
Futhermore, the customer decides where and when to go and remove the pnd from their account.
Bank induced pnd in banking
This is a type of pnd on account that’s from the bank of which they don’t need the customer permission to place it.
There are millions of reasons why banks especially in Nigeria place account on pnd.
Some of the reasons may be as follows.
- Suspicious account compromise and complaint.
- Bridge of limit.
- Dormant account for a very long time.
- Failure to verify customers document like Id card or utility bills prove and so on.
- Failed Address verification (AVR).
- Improper account migration.
- No mandate on account.
- Situation where the owner of the account is dead.
- Under aged (opening account for minors without proper documentation).
- Cases of customer trying to out smart the bank or holding banks POS illegally and so many other reasons.
In fact, the bank bank will place the account on pnd until any other above issues is resolved.
So once any of them occurs, they bank doesn’t need instructions from the customer to place that account on pnd.
CBN or Third party induced pnd in banking
This is a situation where an individual or an organization different from the account holder approaching a particular bank to placed that account on pnd.
Most cases CBN write to bank to place a customer’s account account on restrictions for investigation purpose or it likes.
Alternatively, we have seen situations where people approach bank telling them that the should place their friends accounts on pnd due to death or into illegal business.
Furthermore, people also go to court to get a court order when they mistakingly do transfer into a wrong account.
When it’s serious the bank will place lien of that same amount on that or pnd as a security measures.
Above all, most of the people that falls into this categories are our leaders and individuals into unknown business.
Causes of pnd on banks account
The major cause of pnd on account is mainly due to improper and incomplete documentation during account opening.
Another reason is when account are manually open without a mandate on that account.
Some may be as a result of limit bridge and well as cases like death.
Solution to post no debit on bank account
First, go to your bank and complain about your inability to withdraw your funds.
The bank will go to account status to check reason why you can’t withdraw your money seamlessly.
This is in other words called “reasons for pnd on account” then the will let you know and resolve it swiftly.
They will give you the necessary form to fill before proceeding.
Once the pnd lifting form is completed and logged, you should be able to withdraw from your account in 1hr time.
Conclusion
Post no debit on individual accounts is an avenue banks use to safeguard your funds from unnecessary loss.
The help you to deactivate every withdrawal windows pending when the sees you in person to resolve it.
During this period funds can be deposited into the account but can’t be withdrawn be it as it may.
Above all, a customer can’t remove a pnd on his or her account by herself.
It’s the bank duty to place post no debit and still remove it from a bank account when due.
Also, Banks don’t have the power to freeze your account with pnd without a legal court order or bridge of SOM.
Hope you have learn all that you wanted to this article?
If you like what you have just read on how to lift pnd on account, please comment and share.
However, if you still have questions concerning this, you can reach out to us via the comment section.
Regards.