April 14, 2024 3:00 pm
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CBN Takes Bold Move, Lifts Cash Deposit Limits on Domiciliary Accounts, Permits Daily Withdrawal of $10,000

Central Bank of Nigeria (CBN) Lifts Cash Deposit Limits on Domiciliary Accounts

The Central Bank of Nigeria (CBN) has lifted the cash deposit restrictions on domiciliary accounts, allowing account holders to withdraw up to $10,000 per day. The apex bank made this known in a statement released on Sunday. The statement follows a June 14 announcement on new guidelines in the foreign exchange market.

An extraordinary Bankers’ Committee meeting was held on Friday, June 16, to discuss the implementation of the new policy and its implications for the banking public. The new policy is aimed at promoting transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence, and ensure overall stability in the FX market.

According to Dr. Isa Abdulmumin, the Director, Corporate Communications at CBN, the apex bank provided further guidance to Deposit Money Banks (DMBs) in line with deliberations at the meeting. The guidance includes:

  1. All visible and invisible transactions (medicals, school fees, BTA/PTA, airline and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
  2. DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
  3. 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.
  4. 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.
  5. The CBN will prioritize the orderly settlement of any committed FX forward transactions as they fall due to boost market confidence further.
  6. The Bank will normalize its CRR maintenance processes and ensure equity in its implementation across the banking industry.

The CBN has promised to continue to engage stakeholders and issue further guidance as it implements its ongoing reforms to promote transparency, liquidity, and price discovery in the foreign exchange market.

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