The Central Bank of Nigeria on Monday cautioned Banks in the country against misleading their customers on transactions carried out through domiciliary accounts.
In a letter dated February 24, 2020, and posted on its website on Monday night, the apex bank’s director, Trade and Exchange Department, Dr. Ozoemena Nnaji, said that all ordinary domiciliary account holders can utilise cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.
The letter read in part, “Following different interpretations of operations of domiciliary accounts. It has become imperative to clarify the operations of domiciliary accounts as contained in the CBN Foreign Exchange Manual Memorandum 25 provisions under reference.
“For the avoidance of doubt, all provisions of the CBN Foreign Exchange Manual has not changed and remains in effect.
“Consequently, all ordinary domiciliary account holders can utilise cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.
“As a result, all deposits money banks are advised to desist from misguiding their customers. Please ensure strict compliance.”
Earlier on Sunday, while clarifying the uncertainties surrounding the operations of domiciliary accounts, the apex bank explained that it had not prohibited the acceptance of foreign currency cash deposits by deposit money banks.
CBN spokesman, Isaac Okorafor, said, “The bank has not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.
“Only electronic fund transfers into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”
Okorafor, therefore, urged stakeholders and other interested parties to always endeavour to seek clarification on issues and avoid speculative tendencies which were detrimental to the financial system
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