Nigerian Banks Set monthly Limits for Cash Deposit into Domicilary Accounts
Do you own a Domicillary account in Nigeria? If yes then this information will interest you as the Central Bank of Nigeria (CBN) have directed banks in the country to set monthly cash deposit on your account. See more details below.
Banks set new Monthly Cash Deposit for Domicilliary account holders - Do you know the amount of cash that can be deposited into domicilary accounts of customers in Nigeria has been reduced by banks across the country. This new development is coming after the Central Bank of Nigeria (CBN) indefinitely extended a scheme that allows beneficiaries of diaspora remittances to get an extra N5 for every $1 received.
The Naira 4 Dollar promo was introduced by the apex banks and became effective from Monday, March 8, 2021, and was to initially last for only two months.
However, just last week, the banking industry watchdog issued a circular to announce that the initiative is to now run till further notice.
"Further to the CBN circular referenced TED/FEM/PUB/FPC/01/003 dated March 5, 2021, on the above subject matter, we hereby announce the continuation of the scheme until further notice.
"All aspects of the operationalization of the programme remain the same.
"Please take note and ensure compliance," the circular issued last week had stated.
The Naira 4 Dollar policy scheme was introduced to boost FX liquidity as the country was experiencing a shortage in supply as a result of a d Celine in revenue from crude oil sales.
An earlier notice from the CBN has explain the scheme would help Nigeria "to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora."
Over the weekend, we sighted a mail from one of the commercial banks, saying customers are no longer allowed to make deposit of more than $5,000 in a month into a Domicillary account.
However, there is no limit to set for electronic transfer into such accounts.
"There is a $5,000 monthly cash deposit limit," a part of the notice read.
"Cash funded transfers to beneficiaries with accounts in other banks in Nigeria are no longer allowed," the notice also stated, encouraging customers "to make deposits via electronic transfers."
A banker who pleaded anonymous said the cash deposit limit was put in place to prevent customers from exploiting the CBN promo as once feared by a renowned economist, Mr. Bismarck Rewane.
Mr. REWANE had said two months ago that some Nigerians could send FX to their loved ones at home, withdraw it for the N5 cash bonus and then transfer the funds back abroad to be re-transferred back into the country.
"in any case, you collect cash, and you take it to the parallel market or autonomous sources to sell the Naira, and then come back and you get the N5. What could happen is that you could turn $1, 000 back again to your brother, who will bring it back.
"So, What could happen is that there could be what I call playing with neurons, the same money turning around the velocity of separation increasing, while the quantity supplied into the market will not increase," he told Channels TV after the CBN announced the policy.
So in a nutshell, you are now being limited to deposit not more than $5,000 into your domicilary account but electronic inflow especially from affiliate programmes and Google can be accepted.