Nigerian banks have begun to impose new limits on the amount of cash transfers that domiciliary account holders can make from their cash deposits.
According to our correspondents’ findings, the limits range from $5,000 to $10,000.
According to a circular obtained by one of our correspondents on Friday from one of the banks, “the maximum limit for foreign currency transfers by cash deposits is now $5,000 per month.”
“This means that only a maximum of $5,000 monthly will be allowed for transfers if the source of funds is a cash deposit into a domiciliary account.
“Cash deposits of foreign currencies other than USD may be paid into domiciliary accounts (subject to an equivalent of $5,000 monthly limit) but will not be allowed for transfer purposes.”
It was learnt that this was in accordance with a 2020 circular of the Central Bank of Nigeria. A portion of the circular said, “Ordinary Domiciliary Accounts:
This was discovered to be in accordance with a 2020 circular issued by the Central Bank of Nigeria. The circular stated, in part, “Ordinary Domiciliary Accounts:
Account holders who fund their accounts via electronic/wire transfer will have unrestricted access to these funds for eligible transactions.
Existing regulations will continue to apply to accounts funded by cash deposits.”
A cash deposit of up to $10,000 cannot be transferred electronically to another account and can only be withdrawn in cash, according to a source from one of the banks who spoke with our correspondent on Friday.
The source noted that there was no daily limit of dollars that a person could deposit in the account.
According to the source, when huge cash dollar deposit is made, it must also be withdrawn by cash.
The source said, “There is no law stopping anybody from lodging more than $5,000 or $10,000 into your account in cash. But what you need to note is that if you lodge more than $10,000 into your account, you cannot transfer that money, you can only withdraw that same cash based on availability. The bank needs to source the money to give it to you in cash.”
Scarce foreign exchange earnings had forced the banks and the CBN to adopt a number of policies aimed at preserving limited available foreign currencies.
These policies include currency swap with China and the recent naira for dollar incentive for customers that send forex through official channels.