Connect with us

Banking

First Bank Gives Update on Requirements for FX Purchase

Published

on

requirements for FX purchase

By Aduragbemi Omiyale

One of the leading financial institutions in Nigeria, First Bank, has given updates on how its customers can apply for foreign exchange (FX) “in line with regulatory requirements.”

In a notice obtained by Business Post, the lender said customers can secure $4,000 for Personal Travel Allowance (PTA) and $5,000 for Business Travel Allowance (BTA) to be disbursed directly to their First Bank Travel Card.

However, the bank emphasised that “all PTA/BTA applications along with the approved Form A are submitted at the branch exactly 14 days before your proposed travel date,” noting that sales are limited to two quarters a year.

This development has become necessary in Nigeria as a result of the scarcity of forex in the country. This has forced the banks to ration available FX to customers.

In the message sent via email, First Bank noted that for the application of hard currency for the payment of school fees abroad, customers must send the request at least 30 days before.

“For school fees, a minimum of 30 days is required for processing, after the submission of documents along with the approved Form A at the branch, subject to a maximum of $15,000 per semester and limited to two semesters per session,” the lender stated.

It added that application for upkeep requires a minimum of 30 days for processing subject to a maximum of $3,000 (or its equivalent in other currencies) per semester, limited to two semesters per session.

It stressed that the customer must present evidence of payment of the school fees for the current session if the school fee was not paid through First Bank.

The notice also disclosed that “a Form M must accompany applications for Form Q, subject to a maximum of $20,000 and limited to 2 quarters a financial year.

“Application for Form A for (school fees, student upkeep, PTA/BTA) must be processed on the Central Bank of Nigeria’s Trade Monitoring System (TRMS) platform.”

The bank listed the requirements for FX purchase and processing school fees for the first degree and post-graduate programmes as:

Admission letter on the school letterhead

Invoice for the current semester on the school letterhead.

The beneficiary bank/account details in the name of the school/university

Duly completed Form A

Authority to debit customer/applicant account for Naira equivalent and charges

Biodata page of the International passport of the student

Additionally, a first-degree certificate is required for postgraduate programs.

Notification of result is acceptable only if it is duly endorsed as a ‘certified true copy’ by the institution that awarded it

The applicant should be a recognized parent or guardian of the student.

School fees and student upkeep is strictly for degree and postgraduate programs.

The school fees amount should be equal to or less than the amount on the invoice and not more than the amount on the invoice.

The maximum limit of $15,000 (or its equivalent in other currencies) per semester is no longer applicable. The amount on the invoice is the limit in line with recent CBN/ Bankers committee decisions.

The student upkeep/maintenance fee is a maximum of $3,000 (or its equivalent in other currencies) and can be paid directly to the account in the name of the student abroad per semester if the school does not make provision for the collection of student upkeep on behalf of the student. This is in line with the recent CBN/ Bankers committee decision.

Requirements for processing PTA/BTA:

Biodata page of International Passport

Valid Visa Page

Duly confirmed return ticket with e-ticket number

Authority to debit account for naira equivalent and charges

Account must have been opened and run for at least 6 months

Complete a prepaid card request form where the customer does not have one

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.

Banking

Cashless Policy: CBN Announces Fresh Cash Withdrawal Limits

Published

on

fresh cash withdrawal limits

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has placed new limitations on cash withdrawals following the launch of the redesigned Naira notes by President Muhammadu Buhari last month.

In a letter seen by Business Post on Tuesday, all Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs) must not allow individuals and corporates to withdraw more than N100,000 and N500,000, respectively, while cheques above N50,000 shall not be available.

It noted that in line with the cashless policy of the CBN, all financial institutions must comply with the directives, which include, “The maximum cash withdrawal over-the-counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively.

The apex bank noted that individuals and companies intending to go above the fresh cash withdrawal limits should be ready to pay processing fees of 5 per cent and 10 per cent, respectively.

“Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

“The maximum cash withdrawal per week via Automated Teller Machine (ATM)) shall be N100,000, subject to a maximum of 20,000 cash withdrawals per day. Only denominations of N200 and below shall be loaded into the ATMs.

“The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.”

In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, the apex bank noted that such must not exceed N5 million and N10 million for individuals and corporate organisations, respectively.

It noted that this should be subject to the referenced processing fees in addition to enhanced due diligence and further information requirements.

The CBN noted that the financial institutions are required to obtain the following information at the minimum and upload the same on a portal created for the purpose, including a valid means of identification of the payee (National ID, International Passport, Driver’s License).

Others include the Bank Verification Number (BVN) of the payee, notarized customer declaration of the purpose for the cash withdrawal, and senior management approval for the withdrawal by the Managing Director of the drawee, where applicable, as well as the approval in writing by the MD/CEO of the bank authorising the withdrawal.

Continue Reading

Banking

CBN, Stakeholders to Check Rising Wave of Cyber Attacks

Published

on

rising cyber attacks

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has assured information security stakeholders and the general public of its commitment to curb the rising cases of cyber attacks within Nigeria’s cyberspace.

This was disclosed by the Director of the Payments System Management Department of the CBN, Mr Musa Jimoh, in his keynote address at the annual Information Security Society of Africa – Nigeria (ISSAN) Cybersecurity Conference in Lagos.

He stated that the apex bank was firmly committed to building a sustainable payments ecosystem in the country.

He also commended ISSAN for organizing the event, stressing that the apex bank will continue to collaborate with organisations that are committed to addressing the rising activities of cyber attacks.

Also speaking, the President of the FinTech Association of Nigeria (FinTechNGR), Mr Ade Bajomo, said to adequately address the rising rate of cyber attacks, organisations should embrace collaboration and information sharing on cyber breaches.

According to him, keeping silence on the part of organizations that had been attacked would not help others, stressing that full disclosure, synergy, and information sharing on reported cyber-attacks and how it was managed would guide other organizations to put preventive and countermeasures in place.

He also called on organizations to constantly upgrade their technology to counter cyber-attacks, urging them to have a data backup.

On his part, the president of ISSAN, Mr David Isiavwe, said the conference was devoted to further exposing the new threats and trends in the cyber security space and also offering practical steps on what businesses and individuals need to know and do to check the rising tide of the activities of cyber-criminals.

He observed that cyber attackers are getting more sophisticated globally, which is an aftermath of the COVID-19 pandemic, stressing that greater awareness must be created to minimize attacks on businesses that may result in losses by various organizations.

Further, Mr Isiavwe, who is also General Manager at Ecobank, made a case for customer awareness as well as a collaboration by all stakeholders.

ISSAN is a not-for-profit organization dedicated to the protection of Nigeria’s cyberspace, specifically and the entire cyberspace in Africa, generally.

Continue Reading

Banking

Bank of the Year Award Shows Zenith Bank’s Resilience—Onyeagwu

Published

on

Zenith Bank GMD Ebenezer Onyeagwu GML

By Modupe Gbadeyanka

The Group Managing Director/CEO of Zenith Bank Plc, Mr Ebenezer Onyeagwu, has expressed satisfaction with the emergence of the financial institution as the Bank of the Year in Nigeria in The Banker’s Bank of the Year Awards 2022.

The award, which was announced by The Banker Magazine, Financial Times Group, United Kingdom, during the awards ceremony held in London on December 1, 2022, was in recognition of Zenith Bank’s strong management, sound business model and strategy, support for small businesses and efforts to cut energy consumption.

According to the Banker, Nigeria’s Bank of the Year award was among the continent’s most hotly contested this year, befitting the country’s status as Africa’s largest economy.

This is coming on the heels of the award as Number One Bank in Nigeria by Tier-1 Capital by The Banker won by Zenith Bank earlier in the year.

Mr Onyeagwu, in his remarks, said, “winning the Bank of the Year attests to our tenacity as an institution despite a very challenging operating environment exacerbated by persistent macroeconomic headwinds.”

“Indeed, being recognised by The Banker – the world’s longest-running international banking title is an acknowledgement of the resilience of the Zenith brand as the leading financial institution in Nigeria and the West African sub-region,” he added.

Mr Onyeagwu lauded the founder and chairman of Zenith Bank, Mr Jim Ovia, for his guidance and pioneering role in laying the foundation and building the structures for an enduring and successful institution, the board for their outstanding leadership, the staff for their commitment and dedication as well as the bank’s customers for their unflinching loyalty to the Zenith brand over the years.

Regarded as the industry standard for banking excellence, The Banker’s Bank of the Year award is contested by the world’s leading financial institutions, with winners chosen across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.

Zenith Bank’s track record of excellent performance has continued to earn it numerous awards, including being recognised as Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine; Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards; Best Commercial Bank, Nigeria 2021 and 2022 in the World Finance Banking Awards; Best Corporate Governance Bank, Nigeria in the World Finance Corporate Governance Awards 2022; Best in Corporate Governance’ Financial Services’ Africa, for three consecutive years from 2020 to 2022, by the Ethical Boardroom; Best Commercial Bank, Nigeria and Best Innovation In Retail Banking, Nigeria in the International Banker 2022 Banking Awards. Also, the Bank emerged as the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands 2020 and 2021, Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards 2020 and Retail Bank of the year, for three consecutive years from 2020 to 2022, at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Similarly, Zenith Bank was honoured as Bank of the Decade (People’s Choice) at the ThisDay Awards 2020 and emerged winner in four categories at the Sustainability, Enterprise, and Responsibility (SERAS) Awards 2021, carting home the awards for “Best Company in Reporting and Transparency”, “Best Company in Infrastructure Development”, “Best Company in Gender Equality and Women Empowerment”, and the coveted “Most Responsible Organisation in Africa.

Continue Reading
%d bloggers like this: