CBN Removes Cash Deposit Limitation on Domiciliary Accounts, Permits Daily Withdrawals of up to $10,000

The Central Bank of Nigeria (CBN) has announced the removal of cash deposit limits on domiciliary accounts, allowing account holders to withdraw up to $10,000 per day. The CBN made this declaration in a statement released on Sunday, following the issuance of new guidelines in the foreign exchange market on June 14. The statement highlighted that an extraordinary meeting of the Bankers’ Committee took place on June 16 to discuss the implementation and implications of the new guidelines for the banking public.

According to the statement, domiciliary account holders are now permitted to utilize cash deposits up to $10,000 per day or its equivalent through telegraphic transfer. Deposit Money Banks (DMBs) are required to provide returns to the CBN, including the purpose of such transactions. However, the statement emphasized that cash deposits into domiciliary accounts will not be restricted, as long as DMBs adhere to proper Know Your Customer (KYC) procedures, exercise due diligence, and comply with anti-money laundering/combating the financing of terrorism (AML/CFT) laws and other relevant regulations.

The statement also outlined further guidance provided by the CBN to DMBs, including the eligibility of all visible and invisible transactions for the Investors’ and Exporters’ (I&E) window, expeditious processing of eligible invisible transactions using the applicable rate at the I&E window, and the priority given to the orderly settlement of committed foreign exchange forward transactions to boost market confidence. The CBN also expressed its commitment to ensuring equity in the implementation of Cash Reserve Ratio (CRR) maintenance processes and to engaging stakeholders while issuing additional guidance during the ongoing reforms in the foreign exchange market.

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