The Central Bank of Nigeria (CBN) has warned commercial banks against misleading their customers with regards to the operation of domiciliary accounts in the country.
The CBN gave the warning in a letter titled: ‘Clarification on Operation of Ordinary Domiciliary Accounts,” dated February 24, 2020.
The letter was posted on its website, a day after it has said the news making the rounds that it had banned domiciliary accounts’ transactions was false.
The letter addressed to all banks was signed by the Director, Trade and Exchange Department, CBN, Dr. Ozoemena Nnaji.
The banking sector regulator which stressed that there have not been changes to its Foreign Exchange Manual stated that all ordinary domiciliary account holders could utilize cash deposits not exceeding $10,000 or its equivalent by telegraphic transfers to fund eligible transactions.
It explained: “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 utilize 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.”
Issac Okorafor, Corporate Communications Director of CBN over the weekend, said,
“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into Domiciliary accounts can be transferred from such accounts while cash deposits into such accounts can only be withdrawn in cash also.”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 urged stakeholders and other interested parties to always endeavor to seek clarification on issues and avoid speculative tendencies which are detrimental to the financial system.