CBN Removes Restriction on Domiciliary Accounts, Raises Cash Deposits to $10,000

June 18, 2023
restrictions on domiciliary accounts

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) has removed the restrictions on domiciliary accounts and has increased the cash deposits to $10,000 daily.

The bank confirmed this development in a statement on Sunday after an extraordinary Bankers’ Committee meeting to discuss the new foreign exchange (FX) policy aimed to converge the various exchange rate regimes in the country.

The CBN said domiciliary account holders must be allowed full access to their funds.

“Domiciliary account holders are permitted to utilize cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer,” a part of the notice from the central bank said.

“Ordinary domiciliary account holders shall have unfettered and unrestricted access to funds in their accounts,” the bank added.

Also, the bank said its new forex policy, which was announced on June 14, 2023, is aimed 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.

It said as a result, all visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors and Exporters (I&E) segment of the market,

The CBN further said cash deposits into domiciliary accounts will not be restricted, subject to deposit money banks (DMBs) conducting proper know your customer (KYC), due diligence, and adhering to the spirit and letter of extant AML/FT laws and other relevant rules and regulations.

“DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I&E window,” it also stated, noting that, “DMBs shall provide returns to the CBN including the purpose for such transactions.”

In the statement, the CBN promised to prioritise orderly settlement of any committed FX forward transactions as they fall due in order to further boost market confidence.

It assured the banking public that it remains committed to ensuring a stable and efficient FX market that meets the needs of all legitimate users.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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