CBN Gives Access, Zenith, GTB, Others 4 New Directives on Domiciliary Bank Accounts

• The CBN has released six new directives on how domiciliary bank accounts should operate in the country
• The move is aimed at promoting transparency, discouraging speculation and ensuring overall stability in the forex market
• Access, Zenith and Guaranty Trust, are among several other commercial banks expected to make make the necessary adjustments

The Central Bank of Nigeria (CBN) has released new directives to Deposit Money Banks (DMBs) regarding the operation of domiciliary bank accounts in the country.

DMBs are commercial banks that accept deposits from customers from any part of the country and conduct other banking services as prescribed by the CBN.

The CBN, in a statement, directed that commercial banks should allow customers to now make withdrawals from their domiciliary accounts up to $10,000 daily.

Before the changes, Legit.ng understands that withdrawal from a domiciliary account had a limit of $10,000 per month.

Read also

"Tap on my chest": First bank installs robot in branch, video interaction with customer goes viral

CBN hopes that with the removal of restrictions, more Nigerians will now use official channels for forex transactions thereby enhancing liquidity and transparency in the foreign exchange market.

Part of the CBN statement reads:

"These policy changes aim to promote transparency, liquidity and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market."

The 4 new directives to banks on domiciliary accounts

• Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts
• Domiciliary account holders can use cash deposits up to USD$10,000 per day or its equivalent via telegraphic transfer.
• Deposit Money Banks (DMBs) shall provide returns to the CBN, including the purpose for such transactions.
• Cash deposits into domiciliary accounts are not restricted, but DMBs must follow proper KYC, due diligence, and comply with AML/CFT laws and regulations.

Read also

Access Bank and UBA sign agreement to allow Africans trade without the need to use dollars

Naira bounces back as dollar exchanges same rate in official, black FX markets

Meanwhile, in another report, the naira to the dollar exchange rate at the official and black markets met for the first time in eight years and closed at N756.

This followed the recent foreign exchange reforms embarked upon by the Central Bank of Nigeria (CBN).

Kingsley Obiora, the CBN’s deputy governor, has further explained the ongoing operational reforms in Nigeria's foreign exchange markets.

Source: Legit.ng