Banks Place Limits On Domiciliary Accounts Transfers

Banks have started placing new limits on transfers domiciliary accounts holders can make from cash to cash lodgements.

The limits range from $5,000 to $10,000.

A circular from one of the banks stated, “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 discovered that this was in accordance with a 2020 circular of the Central Bank of Nigeria. A portion of the circular read, “Ordinary Domiciliary Accounts:

“Where accounts are funded by electronic/wire transfer, account holders will be allowed unfettered and unrestricted use of these funds for eligible transactions.

”Where accounts are funded by cash lodgments, existing regulation will continue to apply.”

Scarce foreign exchange earnings had coerced the banks and the CBN to adopt a number of policies targeted 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.