By Ken Chiwendu
The Central Bank of Nigeria (CBN) on Sunday lifted restrictions on cash deposits into domiciliary accounts saying customers “shall have unfettered and unrestricted access to funds in their accounts”.
This is contained in a statement issued by the Director, Corporate Communications,Dr Isa Abdulmumin immediately after a meeting with the bankers’ committee which focused on providing further guidance to deposit money banks (DMBs) on the recent operational changes to the foreign exchange market .
In line with this, ,”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 CBN will continue to engage stakeholders and issue further guidance as it implements the ongoing reforms” The Statement added.
What the lifting of the restrictions mean to Forex harvesters..
The development has generated reactions mainly that of relief for parents whose children are schooling abroad and others who seek medical treatment or have other needs to travel abroad.
When the restriction was in force for whatever reason under the suspended Governor of the CBN, holders of Domiciliary accounts were limited to deposit of $10,000 per day and then with difficulty in withdrawal or transfer, but with the latest directive by the bank, there is no limit to what a customer can deposit in the bank ,however only a maximum of $10,000 withdrawal or transfer is allowed per day .
Emelda,an international business woman who spoke with this publication expressed delight over news of the bank’s flexibility.
Linking the development to the foresight of President Bola Tinubu,She said” When the righteous rules, the people rejoice. This is indeed gratifying”
” I wish also that the government would look into the depreciating Naira and see that it gains marginally to ease our burden.
” For now, all I can say is, it is good news” she said
In his reaction,Uzoma,a parent said ” So there’s this window to make things easier for people yet Emefiele decided to punish us by introducing hurtful policies?. May we never have his kind as governor of Central Bank or in order position of trust” he said.
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