U-turn: CBN clarifies order on domiciliary account transfers

The Central Bank of Nigeria (CBN) cleared the air on the order it gave to Deposit Money Banks (DMB) on transactions carried out through domiciliary accounts in the country. The development was cleared in a letter issued by the apex bank and seen by Nairametrics.

The letter, which was signed by CBN’s Director, Trade and Exchange Department, Dr Ozoemena Nnaji, cautioned the DMBs against misleading their customers on transactions carried out through domiciliary accounts in the country.

It read, “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.”

Meanwhile, Nairametrics had reported, on Sunday, that the CBN stated that only cash deposit into domiciliary account can be withdrawn over the counter and not through electronic transfer.

The apex bank disclosed in a tweet, stating that deposits made through electronic transfers into domiciliary accounts can only be transferred but cannot be withdrawn as cash over the counter.

The CBN added that cash deposits also made into domiciliary accounts can only be withdrawn as cash over the counter and not transferred out of the domiciliary account.

The Director, Corporate Communications, CBN, Isaac Okorafor, had clarified the uncertainties surrounding the operations of domiciliary accounts in Nigeria.

He 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into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”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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