Stop confusing customers on domiciliary accounts, CBN warns banks

 

BY OUR EDITOR

The Central Bank of Nigeria (CBN) has warned banks to stop confusing their customers on operations of domiciliary accounts in the country.

The CBN in a circular issued Monday and addressed to all banks, a copy of which is posted on its website, said it had become necessary to clarify the operations of domiciliary accounts as contained in the CBN foreign exchange manual.

The apex bank, in the circular signed by Dr O. S. Nnaji, Director Trade and Exchange Department, accused deposit money banks of giving different interpretations of operations of dom accounts to their customers.

The circular titled, “Clarification on operations of ordinary domiciliary accounts”, urged the banks to ensure strict compliance to the clarification as the CBN foreign exchange manual had not changed.

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We reproduce below details of the CBN circular the circular:

“Following different interpretations of operations of domiciliary accounts, it has become imperative to clarify the operations of domiciliary accounts as contained in the Central Bank of Nigeria Foreign Exchange Manual Memorandum 25 provisions under reference.

“For the avoidance of doubt, all provisions of the Central Bank of Nigeria Foreign Exchange Manual has not changed and remains in effect.

“Consequently, all ordinary domiciliary account holders can utilise cash deposits not exceeding USD10,000 or its equivalent by telegraphic transfers to fund eligible transactions.

“As a result, all deposit money banks are advised to desist from misguiding their customers.

“Please ensure strict compliance.”

The CBN had on Sunday said that it had not prohibited the acceptance of foreign currency cash deposits by Deposit Money Banks.

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

“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into domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also,” Okoroafor had stated.