Banking

CBN lifts restrictions on domiciliary accounts

The Central Bank of Nigeria (CBN) has lifted the restrictions placed on domiciliary accounts.

The CBN made this known via a statement issued on Sunday, June 28, by the Director, Corporate Communications, Dr Isa AbdulMumin.

AbdulMumin stated that account holders can now unrestricted access to funds in their accounts and make up to $10,000 withdrawals daily.

He noted that the CBN aims to promote transparency, liquidity and price discovery in the Foreign Exchange market, adding that this is in order to improve FX supply, discourage speculation, enhance customer confidence, and ensure overall stability in the FX market.

He said that in line with deliberations at an extraordinary Bankers’ Committee meeting held on June 16, the CBN provided further guidance to Deposit Money Banks (DMBs) as follows:

“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.

READ ALSO: CBN orders banks to trade freely as naira exchanges at N755/$

“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts.

“Domiciliary account holders are permitted to utilise cash deposits not exceeding 10,000 dollars per day or its equivalent via telegraphic transfer.”

The CBN spokesman noted that the DMBs are mandated to provide returns to the CBN, including the purpose for such transactions.

AbdulMumin added that cash deposits into domiciliary accounts would not be restricted, subject to DMBs conducting proper Know Your Customer (KYC) and due diligence.

“The CBN will prioritise the orderly settlement of any committed FX forward transactions as they fall due in order to boost market confidence further.

“The Bank will normalise its Cash Reserve Ratio (CRR) maintenance processes and ensure equity in its implementation across the banking industry,” he assured.

The CBN official added that the apex bank would continue to engage stakeholders and issue further guidance as it implements the ongoing reforms.

The Star

Segun Ojo

Recent Posts

FG asks universities to establish sexual assault referral centres

The Federal Government has called on Nigerian universities to set up Sexual Assault Referral Centres…

6 mins ago

Court sends man to prison for raping 4-year-old girl

The Sexual Offences and Domestic Violence Court sitting in the Ikeja area of Lagos State…

2 hours ago

Uba Sani: What my govt doing to end out-of-school children challenge in Kaduna

Kaduna State Governor Uba Sani has described the large number of out-of-school children, including those…

2 hours ago

Nigeria’s GDP rises by 3.46% in Q3 2024

The National Bureau of Statistics (NBS) has announced that Nigeria’s economy recorded a 3.46 per…

3 hours ago

3 talking points from Premier League

Liverpool defeated stubborn Southampton to move eight points clear at the top of the Premier…

5 hours ago

NAF destroys terrorist food depot, kills scores in Lake Chad

The Air Component of Operation Hadin Kai has destroyed terrorists’ food depot and killed several…

6 hours ago

This website uses cookies.