CBN new rules on domiciliary account.
The Central Bank of Nigeria (CBN) has announced that there will be no restrictions on cash deposits made into domiciliary accounts. Customers will have full and unrestricted access to the funds in their accounts, according to a statement released after a meeting with the bankers’ committee.
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The purpose of the committee meeting was to provide further guidance to deposit money banks (DMBs) regarding recent operational changes in the foreign exchange market and to discuss the implementation and implications of the policy changes for the banking public.
Dr. Isa Abdulmumin, the Director of Corporate Communications, shared that the Central Bank of Nigeria (CBN) has provided additional guidance to Deposit Money Banks (DMBs) based on the discussions held during the meeting. The guidance is outlined as follows:
CBN new rules on domiciliary account.
- Eligibility of Transactions: All visible and invisible transactions, including medical expenses, school fees, Business Travel Allowance (BTA)/Personal Travel Allowance (PTA), airline remittances, and other remittances, are eligible for the Investors’ and Exporters’ (I&E) window.
- Expeditious Processing: Deposit Money Banks (DMBs) are required to process eligible invisible transactions promptly on behalf of their customers using the applicable exchange rate at the I&E window.
- Unfettered Access to Domiciliary Accounts: Ordinary domiciliary account holders have unrestricted access to funds in their accounts. They are allowed to utilize cash deposits up to USD$10,000 per day or its equivalent via telegraphic transfer. DMBs must provide returns to the CBN, including the purpose of such transactions.
- Cash Deposits into Domiciliary Accounts: Cash deposits into domiciliary accounts are not restricted, provided that DMBs adhere to proper Know Your Customer (KYC) procedures, due diligence, and comply with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws and regulations.
- Prioritizing FX Forward Transactions: The CBN will prioritize the orderly settlement of committed Foreign Exchange (FX) forward transactions as they become due to enhance market confidence.
- Normalization of CRR Maintenance: The CBN will ensure the normalization of Cash Reserve Ratio (CRR) maintenance processes and strive for equitable implementation across the banking industry.
- Ongoing Reforms: The CBN will continue to engage with stakeholders and issue further guidance as it implements ongoing reforms.
