CBN Directs Access, UBA, Zenith, Other Banks To Use Reviewed Circulars, Guidelines

• CBN has directed Nigerian banks to comply with all instructions in its new circulars and guidelines recently issued
• The apex bank said the directive is in response to the discovery that some old circulars and guidelines are still in use
• In recent weeks, the CBN has released various circulars aimed at creating stability in Nigeria's financial sector

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs), Licensed Non-interest banks and other authorised dealers at its discount window to use new (reviewed) circulars and guidelines.

A discount window is a monetary policy tool that allows banks to borrow money from the central bank to help banks manage short-term liquidity needs.

The CBN discount window includes the Standing Lending Facility (SLF), the Automated Repo Conversion (AREPO), the Funding for Liquidity Facility (FfLF), and the Tenored Repurchase Transactions (REPO).

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CBN instructions to banks

CBN, in a circular signed by Omolara Duke, the director of the financial market department and published on its website, said it observed that some old circulars and guidelines are still being used despite being replaced by new ones

The circular reads:

“It has been observed that some superseded circulars/guidelines are still in use even though they have been replaced by newer circulars/guidelines.

“The CBN hereby directs deposit money banks, licensed non-interest banks, and other authorised dealers at the CBN Discount Window to adhere to the circulars/guidelines that supersede previous ones issued by the Bank."

The CBN further listed the circulars and directed full compliance.

It added:

“Circular to All Authorized Dealers: Access to the Discount Window, with Ref: FMD/DIR/PUB/CIR/001/006, dated October 7, 2022, supersedes the under listed: Access to the CBN Discount Window on Auction Days, with Ref: FMD/DIR/GEN/CIR/07/005, dated August 8, 2016,

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“Review of the Revised Guidelines for Accessing CBN Lending Window and Repo Transaction, with Ref: FMD/DIR/GEN/CIR/03/006, dated August 1, 2012.

“Revised Guidelines for the Operation of Non-Interest Financial Institutions’ Instruments by the CBN, with Ref: FMD/DIR/PUB/GUI/001/002, dated June 9, 2022, supersedes the under listed: Introduction of Two New Instruments for Non-Interest Banks, with Ref:

FMD/DIR/CIR/GEN/08/009, dated August 24, 2017; “Guidelines for the Operation of Non- Interest Financial Instruments by the CBN, dated December 12, 2012; and The Guidelines on Accessing the CBN Standing Deposit Facility in Circular number FMD/DIR/CON/OGC/12/019 dated July 10, 2019 and reviewed on October 25, 2023 removed the cap on remunerable deposits.

“Consequently, all authorised dealers are hereby notified on the latest development and required to heed accordingly.”

Banks ordered to demand social media handles

Earlier, Legit.ng reported that the CBN asked all financial institutions, including commercial banks, to collect and verify customers' social media handles as part of their Know Your Customer (KYC) requirements.

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The new directive applies to individuals and legal entities' customers as captured in CBN's Customer Due Diligence Regulations for 2023, obtained by Legit.ng.

The CBN hopes that the social media handles will enhance financial institutions' accuracy and depth of customer identification.

Source: Legit.ng