The Central Bank of Nigeria has abolished the cash deposit limits placed on domiciliary accounts in Nigeria. Nigerians with domiciliary accounts can now freely withdraw up to $10,000 per day. The apex bank disclosed this following the announcement on new guidelines in the foreign exchange market on June 14.
An extraordinary Bankers’ Committee meeting was held on Friday, June 16, to discuss implications and implementation of this new policy towards the banking public. The new policy aims to promote transparency, increase liquidity and enhance price discovery in the FX market, while simultaneously boosting market confidence and making the banking system more customer-friendly.
Following the deliberations at the meeting, the Director of Corporate Communications, Dr. Isa Abdulmumin, gave further guidance to Deposit Money Banks (DMBs). These guidance include:
- “All visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.”
- “DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.”
- “Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts. Domiciliary account holders are permitted to utilize cash deposits not exceeding USD$ 10,000 per day or its equivalent via telegraphic transfer. DMBs shall provide returns to the CBN, including the “purpose” for such transactions.”
- “Cash deposits into domiciliary accounts will not be restricted, subject to DMBs conducting proper KYC, due diligence and adhering to the spirit and letter of extant AML/CFT laws and other relevant rules and regulations.”
- “The CBN will prioritize orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.”
- “The Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.”
The Bank promises to continue engaging stakeholders and providing adequate guidance as the ongoing reforms progress.