Post no debit to a bank account; what could that mean?
Trying to perform a debit transaction and couldn’t because your account was restricted, and suddenly you find out that your bank account has post no debit.
That can be very frustrating, especially if you are in dire need of the money in your bank account.
In Nigeria, banks typically use a post no debit to restrict bank accounts from debit transactions.
This includes cash withdrawals from the ATM and counter, money transfers, airtime top-ups, bill payments, and the use of bank USSD codes, which will attract a debit transaction.
Now, the question is: What is a post-no-debit on a bank account?
Below, I’ve explained all you need to know.
Post no debit meaning explained
Post no debit is a debit restriction imposed by banks on a given account due to certain account activities.
Talking about activities may include fraudulent transaction, money laundry, etc.
Aside from these, banks may impose a post no debit on your account if your bank account does not meet their requirements.
This is the case with a bank account that has no bank verification number or NIN linked to it. No debit transactions can be made from such an account.
Post no debit comes with a lot of frustration especially if your bank found your account very suspicious.
Now I will explain the situations that may cause the bank to impose such restrictions on your account, and how you can resolve them.
1. PND Done directly by the bank
This is a situation where the bank placed a hold on your account due to reasons such as a no BVN linked to the account, an account upgrade issues, incomplete documentation, etc.
A very popular and common reason is when there’s no bank verification linked to the bank account.
Once you receive money into your bank account, the money will be restricted, and a post no debit will be imposed on your account.
This restriction will not be removed until you enroll for BVN, obtain your BVN, and link the BVN to your bank account.
Once you have done so, the restriction will be removed.
Another reason is when your bank account needs to be upgraded.
Banks will also place a hold on your account until you upgrade your account; then the restriction will be removed.
Third is improper or incomplete documentation.
Have you ever tried to withdraw money from your account and couldn’t because there was a hold on your bank account due to KYC?
KYC meaning “Know Your Customer”
Banks like First Bank may place a hold on your account due to KYC requirements until the issue is resolved.
Very annoying, though, especially in a country where streets are not properly numbered.
There are other reasons why a bank will directly impose a penalty on your account without receiving a court order.
2. PND imposed due to court order
This is a situation where the bank receives a court order or an order to impose a pnd in your bank account.
This is where things get tough, if your account was red-flagged due to suspicious activities like fraudulent transactions, money laundering, etc.
Now, if the bank found suspicious activities on your account, it has every right to restrict your account.
However, it is then left for you to come and clear things up.
Receiving a large sum of money into your account, especially from an unknown source, will raise a red flag, especially if you are too young for such a transaction.
Yes, it is stated that a level 3 or tier 3 account can receive any amount.
But be careful; receiving multi-millions or billions into your account if you are under 30 or even under 35 will raise suspicion.
The bank will begin monitoring your account, and before you know it, your account will be red-flagged.
Next thing you will see will be post no debit.
In Nigeria, the Economic and Financial Crimes Commission (EFCC) has the right to order any bank to restrict your account and impose a post-no-debit on your bank account.
This is the case if you are found to be involved in fraudulent activities.
In this situation, the bank will have no choice but respect the order and impose a post-no-debit on your account once it receives the order from the EFCC.
Many a time, the bank will state the reason why they imposed post no debit on your bank account.
A third party can impose a PND on your bank account through a court order.
Yes, you heard me correctly.
If I had business dealings with you and discovered cheating or foul play, I would obtain a court order and place a PND on the account to which I made the payment.
Once I send the court order to your bank, the account will definitely be placed on hold, and the person will be unable to make any debit transactions until we resolve the issue.
What you need to do
Once you have noticed that you cannot make any debit transactions from your account, the very first thing you need to do is contact your bank.
This is a case whereby you don’t have the bank mobile app, because pnd will be displayed on your screen if you have the bank’s mobile app or internet banking.
If you have your account officer’s phone number, contact the person and explain in detail that you are unable to make any debit transactions on your account.
Let the bank look into your account and explain why this is happening.
If the bank states that your account was imposed with post no debit, request to know the reason for this action.
It is your right as the account holder to know why the bank imposed a post no debit on your bank account.
From the reason(s) given, you will know how to have the restriction removed from your account.
When the reason is due to bank verification number (BVN), account upgrade, incomplete documentation, etc.
This isn’t a big case, simply enroll and link your BVN to your bank account, and the restriction will be removed right away.
For account upgrade or KYC, kindly upgrade your bank account and do the KYC with the bank.
When the reason is due your account being red flagged
This is a whole lot of issues, especially if your transactions was found suspicious or EFCC giving an order for your account to be frozen.
In this type of situation, I recommend that you try and get your account officer’s phone number.
Please it is very essential.
A good account officer will help you understand how to proceed within the bank and with your bank account.
Secondly, you need a good lawyer.
Yes, because you will need one.
In this type of situation, you need to first clear your name with the EFCC regarding any fraudulent activities you may have been involved in.
This is why I said you need a lawyer.
Once you have cleared things up with the EFCC, they will issue an order for the restriction to be removed.
Aside from the EFCC, the Nigerian police have the right, through a court order, to impose restrictions on your bank account if you’re found engaging in fraudulent activities.
Also, you will likely need a lawyer, unless you believe you can do it without one, which is doubtful.
Once you have cleared your name with the Nigerian police, they will issue a court order for the bank to lift the sanction.
Do you know you can impose pnd on your bank account
This is one banking feature that many bank customers are not aware of, putting post no debit on their bank account.
This usually comes in handy if you have a target you want to achieve before the year runs out.
For Example;
You want to save money for your house project, and you are budgeting around 50 million naira.
All you need to do is open a savings account, immediately request the bank to place a “post no debit” on the account, and that’s it.
This simply means that the account will receive credit transactions, but debit transactions will not be allowed.
With this, you can save money for your house project.
Another example is when you are planning your wedding and need to save three million naira.
Simply request the bank to place a PND on your account, and you will be able to save for your wedding.
To request that no debit be placed on your account, you will need to be present at the bank. You will need to fill out a form and write a letter to the bank branch manager requesting that your account not be subject to debit which is majorly called post no debit.
However, you can state the duration or state until you request for such action to be lifted.
The bank will explain what is involved and how to proceed with such request.
With this, you will be able to save money for your target.
Does post no debit freeze on account
Yes of course. Post no debit means to freeze an account. Once the bank freezes your account, debit transactions will not occur until the bank unfreezes it.
Same goes with post no debit.
Post no debit means your bank account is restricted to debit transactions only. Cash withdrawals, transfers, bill payments, airtime top-ups, USSD code transactions, etc., are unavailable.
However, your bank account will still receive money or credit transactions.
How long does post no debit last in Nigeria?
Once the reason for pnd has been resolved, it takes a maximum of 48 hours to remove pnd from a bank account.
In some rare cases, it mighty take up to 72 hours. However, the duration of pnd depends on how serious the case is, and the reason for the post no debit.